$SPX 15 Minute: Closes right on the wedge line. Do we get a full break down, or just a little fake move lower and reversal? Tomorrow should be interesting.
$SPX 60 Minute: Again, nothing has really changed, it's not bearish unless we break below the wedge, something more than a little splash (head fake) below.
If it's going to break down, I like the idea of a gap down because that's what the market has been doing a lot lately, big gap moves. We have the 50 day MA and lower BB at the same price, minor price support in red, and the green line is the wedge target and the 61.8% retracement level (if we do break down, I like that target). If got below that, the market is in serious trouble.
BAC: A couple days ago, an analyst on CNBC had an interesting little theory. If BAC break $6 it could fall quickly to $5, and in that move the entire financial sector could follow and help drag down the market. I tend to like that thought process so here is BAC, which broke $6 today. Will it hold or slide further?
XLF: The financials are trying to break down in conjunction with BAC.
My Watch List: I've maintained short positions on MCD and M the past few days because of their patterns, even though I thought the market would push up out of the wedge. I've also got 3 aggressive short ideas, none of which I have a trade on currently!
MCD: Everyone's favorite fast food company looks a little tired. Divergence on the RSI and the MACD has hit a ceiling. Price has hit and failed at the over head trend line. A push below cluster support just below, let's call it $90, should open the door for more selling.
M: Divergences in place, price failing at the over head trend line. Price has made a possible small bear flag. If the market pushes lower, this should give way to selling pressure.
CMG Daily: So far it looks like an ascending wedge, which is bullish but price could easily fall to the trend line. We do have divergences building.
CMG Weekly: We have divergences building on the weekly time frame as well.
DECK Daily: Price failed at the over head trend line with divergences. Below the minor uptrend line would be far more bearish near term.
DECK Monthly: Probably the second more interesting monthly chart behind AAPL. Even if it can muster a bounce, it seems like the next major move is lower. Look out when the MACD rolls.
AZO Daily: I tried shorting this once this year, and while I fought it for a gain it was work. Now, price looks tired with divergences in place. Volume dried up on this last small push up! Below the minor uptrend line is a good trigger.
AZO Weekly: Price has moved higher but it has approached the over head trend line so upside could be capped, while a retest of the uptrend line seems likely. Divergences building.
From My Trading Desk: Today we took a small gain by closing our short on JWN. We added a half long on ESTE.
Even though the market sold off hard at the end of the day, I'm still keeping it small until the consolidation zone breaks.
The futures are currently off (1,229ish), and if that holds into tomorrow's open, we get a gap down tomorrow. What it does after that initial gap down will be very interesting.
Happy Trading.
J.D. Rosendahl, Rosey