Three reasons to remain cautious on Tuesday:
- Volume – on a day where financial stocks and energy names both moved up significantly, where was the volume? A breakout move needs volume. Without it, we have to assume institutions and the real market movers didn’t participate convincingly. It feels like they were waiting for a day like this so they can follow it up with a heavy short day (hope I’m wrong).
- SMA100 – Good ‘ol SMA100 on the daily chart represents the last significant reversal in the SPX.
- Rising Wedge – Usually rising wedges end in a nasty fall.
Watch SMA100 tomorrow.. where the SPX opens, finishes the day, etc. I’ll look for long scalps if we move above, but will continue to hold few swings. Give me a few days over SMA100 and I may swing more. We have a heavy wall to break (top of wedge and SMA100 resistance) so be on your toes.
OK – let’s think positively. If the market moves above SMA100, I wanna play long. Here are a few charts showing up on my scans tonight that I’ll have an eye on.
HERO – I’ve seen a lot of chatter around HERO lately, so I thought I would take another look. First thing that jumps out is the bollinger bands. They are getting very tight… especially after today’s spinning top. Feels like a breakout soon, but I’m not buying early. I’ll participate above SMA50. Before then, we don’t have confirmation.
SNV moved out of falling wedge today, but ran into SMA200. SMA200 is a huge resistance level for SNV. Might be interesting swing above if the sector moves up. Or, this could be a possible short if it reverses off SMA200.
NCT – Full Sto and RSI14 are both looking to cross positively (just moved through 50 on RSI14). I’m watching for a move through SMA50 and through the top trendline resistance.
GSI – currently testing horizontal resistance. Let’s get through with volume (good volume today) and there may be a scalp in there.
AVNR – watching symmetrical triangle. Got an alarm set for a move above 3.30.
Others..
ZLC, IVAN
Getting tired.. see you tomorrow. J
