SPY started yesterday with a fakeout at the key 404 level. Swiped lower until finding support at 400. From there, it was a grind higher all day to close above 404. An inverse H&S in the afternoon signaled that we were going to close near the highs. Today we are gapping lower. Technically we broke all the key resistance levels so the next stop is 412. However, it's Friday and we've had 5 green days in a row. I wouldn't be surprised if we found a close in between yesterday's range. Bias is neutral, but I can easily flip if I see the right price action.
CVX - yesterday CVX announced a historical share buyback program. Today, they missed on earnings with lower global oil consumption. Anchored VWAP shows that the majority of buys yesterday are now under water. Looking for a morning shove lower to flush out those longs. They I expect the rally to continue with new buys if we find support above the PD low.
ALV - Gap fade - Up 3 ATRs in the PM on >30K PM vol, gapping into key resistance at 90.26. Looking for failed-follow through momentum then short.
LUV - Prior day had huge relative vol, with capitulation at 34.82. 35.80 is going to be the key level to watch. To do retest and fade lower? Or consolidate and push high into the previous value area? I will be waiting for price action of either side.
CVX - yesterday CVX announced a historical share buyback program. Today, they missed on earnings with lower global oil consumption. Anchored VWAP shows that the majority of buys yesterday are now under water. Looking for a morning shove lower to flush out those longs. They I expect the rally to continue with new buys if we find support above the PD low.
ALV - Gap fade - Up 3 ATRs in the PM on >30K PM vol, gapping into key resistance at 90.26. Looking for failed-follow through momentum then short.
LUV - Prior day had huge relative vol, with capitulation at 34.82. 35.80 is going to be the key level to watch. To do retest and fade lower? Or consolidate and push high into the previous value area? I will be waiting for price action of either side.