Range-bound trade is still the order of the day.
We’ll want to see how the market and leading stocks respond should they hit support at the blue lines.
Sure enough leading stocks have responded thus far.
Watch list ames like AAPL, BID, LULU and CREE have all caught really nice bids as shown in our watch lists below.
Right now it’s a trading range and that is that. We’ve laid out uptrend lines and support lines in the index charts above and until they break we won’t head for the 50 day average or prior supports in the indexes. As we post the S&P 500 is at 1202. That said another day like this puts us right back to resistance so keep that in mind before you go hog wild on the longside here. Should we bust into a new high? Well 1226 is the 61.8% fibonacci level of the whole bear market which will also be a resistance level so be aware.
Standout Name Of The Day
On Friday we highlighted a name that was pulling back off highs to the 50 day average and sure enough LULU hit the 50 day and took off like a rocket. Hope some of you got some. It’s a classic longside trade when you have a stock in a clearly defined uptrend and above the 50 day average. Use it, it works for you more times than not.
38ish to as we post 40.80 is a huge trade.
In our watch list we have another new name that is a little different though. Different in the sense that it’s hit a prior support level that we call an initial pullback trade much like LULU above back in March. You can see above that LULU broke out into a new high and promptly staged a Pullback Off Highs right back to its initial breakout. Now take a look at the stock below. Look familiar?
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