In the last Focus List the plan was easy because of the inside day patterns in all 4 market watches. The result was as expected - a substantial move followed. Today's up move puts the pivot stack in a bullish state, and as I described in the recent training video titled, "Advanced Pivot Patterns", moving from a series of negative stacked days to a positive one should get your attention.
Keep in mind that today's up move occurred on light volume, and faces the headwinds of the bearish phase. As a result, it is likely that we'll have good opportunities for both long and short OR Reversals. Be patient. For shorts look for resistance at the downward sloping moving 10 day moving average. For longs look for support at the prior highs from 9/22 and 9/23.
Let's review the primary conditions
Market Phase: Bearish in all 4 markets
Intermediate-term Daily: Bearish in 3 of 4. The 10 and 20-day daily MA's are stacked and sloped down with price below both in all but the Q's. The Q's MA's have held up, but the price needs to rally above 55.36 the 10-day MA to be back in a stronger bullish condition.
Floor Trader Pivots: After several negative stack days the markets now have moved up enough to change that bias. This should be good for Long OR Reversals
3-day Pivots: All but the IWM's managed to close over the 3-day pivot high, but not by much so an OR breakout over today's highs is important to consider this at all bullish.
Daily Trend Lines and Swings: The Q's are back over their bearish flag trend line and never took out their daily swing low. They had a slow day today but they remain the best index from the long side. The other 3 have bounced off key support swing lows but now face heavy resistance.
All this considered the longer term remains bearish and the compression of Thursday and Friday has enabled the short term to turn slightly positive. We'll follow it up, cautiously.
Longs Focus
ORLY
RL
GMCR
NKE
TZOO
CELG
AAPL
PANL
TSLA
CF
CL
DECK
VFC
CMG
DISH
CERN
CBST
CBOE
CELG
WPI
Short Focus
EPD
CRM
