The market is still in a healthy downtrend & because it is healthy, we are susceptible to low volume bounces along the way. If the bulls can get it together — now would be an opportune time for them to step up their game. News (Greece, Portugal & sPAIN) will probably determine how much of a bounce we see this week, if any. That being said I have a lot of quality charts, both long setups and shorts and I will be ready for a move in either direction.
S&P 500 Futures ($ES) 60 minute candles: If we don’t violate this rising channel before hand I see $1349.5 as a good place for the market to being it’s next leg lower.
WMT - Cleared $62.65 on heavy buy volume. I will consider a long entry on any low volume pullback.
ALXN – Watching $95.05 with above average buying volume as a long entry.
BBBY – A solid break above $72.75 with significant buying volume will start the next leg higher.
CASY – Nice ascending triangle pattern. On the other hand, if the market doesn’t see a bounce, a failure of the rising trend line will provide a low risk/reward short entry.
QCOR - I believe the bottom of the handle is firmly in place.
HNZ – Ascending triangle – same long/short strategy as CASY.
RAI – Interesting volume the last 2 sessions. Watch for a break in price action.
NKE – Watching $113 to start the next leg higher.
TIF – Lost this major support level on huge volume based on news. I think a test of the 8 EMA will provide a low risk/reward short opportunity.
VMW - Failed the 200 EMA and is looking to close the gap at $88.86.
CHKP – Next major support level at $50.65.
CMG – Violated this descending trend line but still watching the $386.45 level and the volume for a clue.
LNKD – Already holding a light probe short from $97.80ish. I’ll add to the position losing the $92 level, confirming the next leg down, for an ultimate target of a gap fill at $77.70. I’d cover clearing above the 20 ema.
PCLN - If you’re going to take just one short, PCLN is looking pretty nasty. Failed to retake support (now resistance) and has a gap at $597.
Hope you had a great holiday weekend,