Bumping Up Against Resistance

On Tuesday, the Nasdaq started strong early but then drifted
and chopped to close poorly.

The S&P also rallied early before reversing. 

It looks like it’s bumping up against resistance at 1100.
This also corresponds with the 50-day moving average. This action suggests a
possible return to the bottom of its trading range–circa 1050.

So what do we do?  Well,
now Anthrax seems to matter–again. This, combined with the fact that the
S&P is stalling out at resistance levels suggests that you might not want to
throw away that sticky note just yet. Also, as I scan through my database, I was
unable to find any meaningful longs. Therefore, as mentioned recently, let’s
wait until the market can get above its 50-day moving averages and stabilize
before we get too bullish. With that said, I think there’s the potential for
some plays on the short side. No matter what side you play, wait for entries and
don’t get too much conviction (one way or the another) in this news driven
environment.

Looking to potential setups, Greenpoint Financial
(
GPT |
Quote |
Chart |
News |
PowerRating)
,
in the weak bank sector
(
$BKX.X |
Quote |
Chart |
News |
PowerRating)
, looks poised to resume its downtrend
out of an inverted cup and handle. Also, pull up the weekly when you get a
chance. It looks like its forming an inverted cup and handle there too.

 

Best of luck with
your trading on Wednesday!

Dave Landry

sentivetradingco@prodigy.net

P.S. Reminder: Protective stops on
every trade!

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book on swing trading currently in the public domain….”

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