Good evening StockBandits!
With the major indexes moving sharply higher in the past couple weeks right from support zones, we saw them become short-term extended last week. The S&P 500 and DJIA each broke out to new recovery highs, and the NAZ approached its recovery high as well. Those with some inventory on hand certainly had reasons to book some profits, but they didn’t. Only one decline was seen, which came on Thursday, and it was quickly forgotten with a Friday rebound.
What we have now is a handful of index charts which have rallied and put in a brief rest. And as logical as it would be for some more meaningful rest to occur here, it could be that this market simply wants to move higher. Wide trading ranges have developed over the past 9 weeks with well-defined support and resistance zones, and that range could potentially serve as a base for another push higher – if the bulls want it badly enough.
On the other hand, the breakouts we saw last week have yet to be built upon. In fact, the S&P 500 has fallen back below they key 1100 area. It’s also a possibility that this trading range will persist, so we need to be on our toes in case that scenario unfolds as well.
It’s certainly an interesting spot, and this next week could be an important one for the short-term health of the market. The trends are still up, but the light volume we’ve seen lately is a wild card factor to be aware of. I’ll be setting up some if-then scenarios for trades this week in hopes of participating in the next move regardless of direction, but as always I will not attempt to force trades – only taking the setups as they come.
Tonight will be written format once again, but we’ll return to the video format tomorrow. I’m setting up some day trades and swing trades heading into Monday, so here’s what’s on my radar with my notes on the charts themselves.
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Day Trading Candidates:
Swing Trading Candidates:
Bullish Watch:
RL, CREE, FSYS, FCN, ADSK, WCN, RAI, NFLX, CHKP, MGA, MCK, HS, REV, GOL, FDX, DTV, RGLD, HBI, DISH, UIS, FOSL, MXB
Bearish Watch:
AONE, STEC, X, STT, MCO, UTHR, AMGN, WFMI, FUQI, APOL, LEAP, FLR, ARO, CLR, AKS, HOT, AAWW, EBAY, DV
The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.
