Bears got whipped into a frenzy yesterday as the leading indices gave away several days worth of gains yet they weren’t able to capitalize as good chunks of those losses have been recovered.
I remain cautiously optimistic $SPX can overtake the $1970/$1975 area but as long as the 50-hour SMA holds I will continue to seek out long positions. However, I will also be very tight on stops at the first sign of market weakness. That starts with getting $SPX back under $1955.
Not really anything to be concerned about when all but consumer staples are green. Would like to see XLF show some strength. Though it did bounce nicely off the 20SMA. Health care broke out to new highs while industrials should also get a good bounce soon as well perhaps tomorrow. Look for a breakout in utilities soon as well.
I’m looking at two setups in LNKD and TWTR going into tomorrow with reluctance; mainly because of the market.
LNKD is probably my favorite setup and the one I will look to target foremost; LNKD has been consolidating pretty nicely between $164 and $171. Though I’ve drawn a rising wedge these are not great performers so I’m reluctant to give it much weight. A breakout though would set up a test with the 100SMA. $172 will be the first test.
Five-minute chart shows a great triangle break near $167.50 and that would’ve been a great opportunity to get in early. Beautiful run up the 9EMA. Would like to see consolidation near $170.50 but will take any setup between there and $171. If gap-up have to beware of gap-fill especially if market is weak.
TWTR has been consolidating beneath long-term resistance for a week now and it may be ready to begin a serious run. Here I’ll be looking at the 100SMA for a test next week.
Five minute shows the sell-off that hit the market yesterday afternoon but tremendous recovery today. Looking for a brief buildup beneath resistance early tomorrow or a break and pullback. If can get any kind of 1-minute or 5-minute pennant early above resistance but below $40, gotta take a shot.
I’m probably being a bit more paranoid here than I’d prefer but will give the momo’s the benefit of the doubt even in a choppy market. FB, GOOGL, BIDU and DDD all exploded big today off yesterday’s lows. It’s just damn hard to ignore.