The markets started off on the defensive except for tech which was bullish following CSCO earnings last night. Oil and energy surged off of the open ahead of the inventory data. Despite weak data, energy held its gains by the end of the session. As you can see from the above charts, technology broke out of its base today and cleared the 50 DMA. The only caveat is the declining volume and that is a red flag particularly obvious on the QQQQs. The broader averages did not break out, but they are hugging the base. So today everybody wins, oil/energy were leaders in strength along with technology.I'm seeing a few bullish morning star patterns on some the oil names on my WL. Coal was a big leader today (ACI bounced off of support as mentioned last night- a nice early trade for me today). All this to say that if energy stages a bounce here, the markets could see a pullback. Anyway, watch for signs of profit taking tomorrow after this two day thrust.
Watch List Update:
AKAM looks weak following last week's gap down. If it fails at the gap day low, target $20.00. My near term target is $15.00. If it catches a bid, former support is now resistance so you can target trade to that level.
FDG - Bull flag
V- Bear flag
CNQ, FWLT - Doji morning star reversal pattern
No comments:
Post a Comment