By: Scott Redler
Technical Damage has set in but it’s not Game Over. Today is very important in my eyes!
If we don’t reverse and go positive today, this little fledging rally will be done. Market hit the 50% retracement level on Monday’s open around 1131 – This could prove to be the top of right shoulder of that pattern I drew for all of you back in early June. Everyone now is talking about 1080 today, so we need to give it a bit more room. 1076-1082 will be my line in the sand.
I was hoping this rally would stay intact till the end of the quarter so I can accumulate a big short in the 1120-1140 area but missed that opportunity so far. If today turns into a trend down day- I will hope for a better set up around 1040-1050.
In the Last two weeks. We’ve seen a bad unemployment report, weak retail sales, horrendous housing numbers and now we are going to a very lack luster 3rd quarter earnings, so hard to be so positive.
What to watch for clues
Tech has shown some signs of Fatigue.
AAPL is trying to hold up but it seems tired. 265-267 is very important support- see if that can hold
Bidu acts well but seems like that can change at any time. If we hold today I will try and buy 76-77
74 is important support
The Below three have similar patterns
VMW- had three down days – see if yesterday’s low can hold- so important support is 67-67.80
SNDK- similar to VMW three down days see how it handles 45-45.80
NFLX –also took back the upper range- see how it handles 112-114
IF these stocks above all slice and don’t hold support- We will see the nail in the coffin
Banks tried to hold up yesterday- listen for headlines today about the reform package
GS important support now 131-133- resistance is 136-137
JPM important support 38-38.50 and resistance around 39
Casino’s –holding better than the market
LVS very strong yesterday- I am flat- I guess if we do hold and go up today- this would be one to buy around 27-27.50
Wynn was upgraded- if we hold this level this could be bought around 86.60 but I’m skeptical
GOLD—I got stopped out of my Gold holding yesterday- even though we did not close below 120 on the GLD
I’d rather be safe. Made too much money here- Watch yesterday’s low if your still involved which is 119.77
BP is on my radar- I will short if it intensifies below 29-29.40
Today is very important. Stay Flexible and on your toes.
