Here are 8 stocks which could benefit from new potential up wave in market.
I think it’s pretty obvious that we’ll be seeing a test of the all time highs before going much lower, but the perfect bull flag channel on SPX here is saying that we may well see a decent dip to buy first. Key support is at 2070 and if that breaks without first seeing a break of flag channel resistance, it’s still possible that we could see a test of flag support in the 2000-10 area. SPX 60min:
The last two cycle trend days both delivered. There is a third this week on Friday but the volume will be very low and I’m doubtful about any decent trending move. We may well not see much in the way of any moves on the equity indices before next week now.
The retracement on SPX stopped just short of a test of the important 50 hour MA. As long as that holds the uptrend is intact. If that breaks then there is a nice looking pattern setup to retest the 2043 area. Resistance is at the current high at 2097. If we see a decent break above we should see a test of 2116 next. SPX 60min chart:
Very late post today as I’ve had a very bitty day. I’m heading out again as soon as I’ve posted this so I’ll be brief.
I mentioned yesterday morning that yesterday and today were both cycle trend days, meaning that there were 70% odds on each day that either buyers or sellers would dominate that day. Yesterday morning opened strongly for bulls, and then sellers dominated the day from the AM high. Today so far has been the mirror image, with bears opening strong and the rest of the day so far being dominated by buyers.
My trading friend (and, these days, shoulder to cry on) Northman Trader put up a Tech Dreck post which neatly shows the rot beneath the glowing surface of the NASDAQ. These charts all scream “poor breadth”, and if our bullish friends want to continue this nonsense into 2016, they’re going to need to see a lot more participation from stuff besides just the heroes of FANG. (Click any chart for a bigger version):
The rising wedge on SPX broke down on Friday afternoon and an RSI 14 sell signal fixed on the 15min chart, with an RSI 5 sell signal also fixing on the 60min chart. There is no obvious short term topping pattern yet, and we may see a higher high to form that, but a retracement looks close. If we see that retracement, then the obvious support levels are the daily middle band in the 2078 area, and the 50 hour MA in the 2061 area. SPX 60min chart: