All 4 market watch charts had a pattern that should not have surprised anyone. After the strong prior day they corrected in an orderly way into the prior day’s range then rallied back to the high of the day.
The pullback was shallow, but I won’t read too much into that, and the daily volume was light. The light volume is a bit of a concern, but the end of August is a light volume period historically.
The end result is a positive day, 3-day pivot bullish confirm, and a decent range day. So tomorrow look for long OR Reversals over S1 I the market watch and the strong stocks. And since the main trend is still down, expect R1 and R2 to be good resistance, especially since they are into resistance created by the 8/15-8/17 highs.
All in all I can’t argue with the short term momentum on the upside until S1 levels and prior day lows are taken out.
Long Focus:
GMCR
BIIB
BIDU
AMZN
COG
SINA
TPX
CMG
JAZZ
IBM
RIMM
YUM
CI
HANS
Shorts
FXI
SLG
RAX
OXY
HAL
URBN
