Posting Up Down Low

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As you can see on the intraday, five-minute chart of the SPY below, the market is “posting up” down near the lows of the day. To be sure, the dip-buyers looked to have taken the day off after being unable to make much progress over the past week to the upside. We are not seeing much power behind bottom pickers just yet, and it can be argued that the market was due for a session like this. Energy stocks continue to lead to the downside, with the OIH and XLE in free fall, selling off on high volume. We knew that they were crowded trades, and a few days of shaking out is to be expected before we see whether the overall uptrend is still intact.

There are plenty of names that look to be pulling back to “obvious” support levels, but those support zones do not mean much if the buyers never show up. A few names on my radar for long ideas: CMG DPZ FSLR MRGE TSL

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