$SPX Daily: I suggested a couple days ago I was looking for a little down and we got that the past two days. Now that we've tested the neckline, the door is open for both possibilities,aa bounce or a break below. Mr. Market does this all the time to keep bulls and bears guessing. My preferred short term view is a little bounce, maybe up to the mid channel line at 1,370 or slightly higher. That will certainly pinch the BBs and possibly set up for a larger correctional phase! If for some reason the market is ready to move lower, then watch for price to fall and we should see the MACD turn down a cross.
IBM: Divergences starting to build, now we want to see if price can grind a little higher and pinch the BBs.
JNK: The MACD still hasn't rolled over!
$VIX: Another day higher but not terribly strong today. If the market needs to push higher one more time, this could back test support. Above the blue line at 19 is more bullish for this and bearish for the market.
GLD: I have a very small position going on GLL. Gold has gone through a 3 day sell off. A spike top is rare and given longer term time frames, I prefer the idea of exhaustion, so we might need one more push higher, which will pinch the BBs and maybe form a more significant top if price and the MACD aren't ready to slide now!
$WTIC: A little ending diagonal pattern. If so, this could break down soon. Next stop could easily be the lower BB and 50 day MA.
My Watch List:
CGEN: Maybe a cup and handle with the handle under development. No trade yet, waiting for a break above the blue down trend line.
MU: Wedge still forming. It will be interesting to see if we get a little splash below the bottom wedge line and a reversal. No trade yet.
VASC: I still think we test the prior high, maybe more but it's too early to tell because we could test it and fade.
CVX: We closed out short on this one today as price followed through. It still looks bearish on the MACD. If oil break down this could slide to the uptrend line easily.
DVN: Possible H&S top. If so, price should fall soon.
COG: Three black crows from the top! Nice divergences on both the RSI and MACD. We have cluster resistance at the lower BB, 50 day MA, and the uptrend line. Price should test this soon.
OPEN: Big drop on divergences and well below the lower BB! While I think it could go lower, it's so far below the lower BB, I'd prefer to short it on a bounce. And yes, this is an aggressive short candidate.
JNPR: Stock has stair stepped down in an orderly manner and approaching support levels of prior gaps and the 200 day MA. Not a buy candidate yet, but lets watch the black trend line for a trigger.
From My Trading Desk: Today we closed our short on CVX for a gain. I took that gain and moved into a short on DVN because of the potential H&S top on DVN. I took a short late in the day on APA. The commodity stocks are showing weakness, and oil has a potentially very bearish pattern in play.
Happy Trading.
J.D. Rosendahl, Rosey