The 60 minute chart highlights an ABC pattern.
$SPX: On the 60 minute chart the $SPX actually tested the up trend line today and tested it's prior peak of several days ago. I can pencil the ABC has finished but I still think a push higher is viable.
$COMPQ: The weekly chart shows declining volume during the formation of the H&S pattern.
$VIX: Tried to bounce, but like I suggested last night, it looks like a little more work lower. Bottom trend line and lower Bollinger Band likely targets. Daily MACD not quite on the turn.
IBM: More of the same with this stock. Very weak and tired move the past few days. A rollover is very bearish. MACD ???
AAPL: I've pencilled in what I would call pure theory. The price structure looks to be forming some kind of top and I've pencilled in what I think might happen. Just concept for now.
My Watch List: Since the potential for a Head and Shoulders Top is ahead of us I thought we’d look at bearish charts for potential trades.
BRCM: Divergences forming. Bollinger Bands pinching. The stock has moved a tad lower testing its prior peak. Could have one more little push higher, but it's beginning to look tired. MACD on the turn down.
CTSH: We have a little back and forth testing support. No technical damage yet. The bearish trade is at least a definitive break below the support. It still could go higher one more time. Divergences every where. Volume declining. MACD on the roll.
SRS: Doesn’t look finished to the down side. Price has traded along the lower band and the MACD is no where near turning higher yet. A little more downside is the preferred view.
JNK: Looks very labored the past several days but a little more upside is in the offing. Looking for a weak test of the over bought level on the RSI.
DAL: Nothing has changed on this since we closed our short weeks ago. It’s still trading above the neck line. I want to see a little more decline in price before trading back into it.
CAL: Many bearish divergences on this one. Looks tired heading higher. A little more upside near term and then I want to see the MACD roll over.
BLL: I want to see the MACD roll over with price. I probably won’t short this until it shows more technical damage. It’s on a strong run and a market favorite, so I don’t want to be early.
Weekly chart shows a stock peaking above a prior peak into new high territory. Any reversal below that prior peak is a bearish clue.
CAT: Weak move higher. Probably creates another divergence with a little more upside.
WRLD: It is moving higher out of a H&S with a target of $46ish. Very labored price structure moving higher. I want to see one more push higher into this wedge looking structure and then the MACD to roll over. Divergences on WRLD forming too.
Weekly chart shows the stock moving into major resistance.
We see a common thread in that we seem to have a little more price work before these are more viable bearish candidates. BLL, CAT, WRLD look like market favorites, so I want to be very patient and not be early on these. The others look a little more ripe but not yet.
From My Trading Desk: We closed our 1/3 position long VSEC. We had 6 gainers in a row and time to take a small loss. I'm sure it will report earnings and the stock will pop. That said, I want to be very light. Outside of a couple small positions on 2 speculative trades we are long free.
Hope all is well.
J.D. Rosendahl, Rosey