It looks like the IXIC might be making itself a new downward trend. Possible bearish flag after the initial selloff over the last few weeks. This week I will be looking for the IXIC to break up through the downward trend line and then the 13610 resistance line. If it fails the trend line, I think we will have more of a gradual downward trend, but if it fails 13610 and double tops, that could mean a large fast movement downward. This time it may drag the SPX/DIA down with it.
On the downside we have some protection at 12610. Whether we do or don't test either resistance level, if it finds support here, this could indicate a strong bullish reversal. However I think that to be unlikely given the valuation of the market today and the necessity of a correction to maintain reasonable valuations in the tech sector. Unfortunately, the rest of the market will probably get caught in the crossfire.
I am also watching the SPX for a probable normal dip along its trading trendline. Looking for some possible short plays there.
Looking for a possible bear PCS on INTC this week as it tests previous resistance line for support in rising wedge pattern...
Another possible bear PCS on AGI this week or early next as it shows a bearish flag in an overall downward trend while showing overbought on the Stoch. Will probably look for a MACD crossover before entering into the position. This will be especially effective if it tests and fails the downward trendline this or next week.
Also looking for entry on a PCS for BK after failing $47 and a bearish crossover in the Stoch and one possibly forming on the MACD.
Looking for a similar play on ED after possibly failing resistance for 3rd time while showing overbought in Stoch with a bearish crossover.
Everything of course seems to be dependent on the TNX so keep an eye out for more panic selling with rising rates.
On the downside we have some protection at 12610. Whether we do or don't test either resistance level, if it finds support here, this could indicate a strong bullish reversal. However I think that to be unlikely given the valuation of the market today and the necessity of a correction to maintain reasonable valuations in the tech sector. Unfortunately, the rest of the market will probably get caught in the crossfire.
I am also watching the SPX for a probable normal dip along its trading trendline. Looking for some possible short plays there.
Looking for a possible bear PCS on INTC this week as it tests previous resistance line for support in rising wedge pattern...
Another possible bear PCS on AGI this week or early next as it shows a bearish flag in an overall downward trend while showing overbought on the Stoch. Will probably look for a MACD crossover before entering into the position. This will be especially effective if it tests and fails the downward trendline this or next week.
Also looking for entry on a PCS for BK after failing $47 and a bearish crossover in the Stoch and one possibly forming on the MACD.
Looking for a similar play on ED after possibly failing resistance for 3rd time while showing overbought in Stoch with a bearish crossover.
Everything of course seems to be dependent on the TNX so keep an eye out for more panic selling with rising rates.
