The market snapped its five-day losing streak yesterday as this time around a last-hour surge took the S&P from near the flat-line to a 0.35% gain. Stocks were strong in the first forty minutes of the session but gave all of those early gains back in the next hour, and the choppy action continued for the rest of the day.
Overall the action remains lethargic despite yesterday's advance, but we at least have a new a new lower level pivot forming at 1690. In addition to the recent action being choppy intra-day, volume has been light. It feels like investors, because of the Fed's decision not to taper, are not yet compelled to sell, but also not eager to put new money to work in the market with the thought that tapering is just a matter of time.
We remain cautious and will judge the composure of any bounce we get off this pull-back. There are not a lot of compelling chart set-ups for now and headline risk is creeping back into the equation with the potential government shut-down less than a week away. Depending on your risk appetite, it would make sense to keep it light heading into this weekend, but we have seen the 2013 market climb the wall of worry before.
S&P futures are down eight handles or so this morning as the government shutdown becomes more of a focus. While the government has been able to strike last minute deals on budget and debt issues a few times over the last couple years, this battle appears to be extra contentious with both sides digging in their heels.
Gold, meanwhile, is up about 1.3% so far this morning as perhaps investors once again look for a safe haven after the precious metals gave back all of their Fed "no taper" day gains.
Today instead of going over the bigger names in high-beta tech we will highlight a few actionable set-ups we featured in our Off the Charts newsletter last night.
Long set-ups
Alexion Pharmaceuticals (ALXN) finished up 2.58% yesterday. The stock is trying to hold higher above $112 as it trades within a macro wedge pattern. A move above $116.75 on volume could see lead to a breakout of this pattern.
CME Group (CME) tacked on gains of 1.01% yesterday as the stock saw continuation to move above the descending trendline. The first level of resistance is $78 but above that this stock could trade above the recent pivot high of $79.45.
Qihoo 360 Technology (QIHU) has a tight upper level pattern forming as the stock puts in a few inside days. Above $90 this trade could get back in motion for higher prices.
LinkedIn (LNKD) triggered above the buy price of $250 yesterday, showing relative strength by finishing up 2.97%. The next obstacle for this stock is the all-time of $257.55.
Potential short set-ups
The banks remain heavy. Are they buy candidates into prior technical levels or are they poised for a breakdown? Bank of America (BAC) has lost support of its key moving averages and the longer it holds below $14.40, the more likely we believe it could see a break of $13.98. The banks could be a good gauge for overall market direction for the rest of the year.
The Gap (GPS) has slipped off the August high and could be forming a Head and Shoulders pattern if the stock continues to hold below $43, the high point of the Right Shoulder. The neckline lies at $40. |
发表于 2013-9-27 09:04
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