Cautiously Optimistic
Each evening we focus on the most interesting aspects for the upcoming trading day. The comments are based on observations of the nightly updates of the Stocks/Sectors and Market Bias pages. They are provided for educational purposes only and are not intended to be direct trading advice. Also, keep in mind that these remarks are made up to 12 hours in advance of the markets opening. Therefore, overnight events may alter the outcome of these observations.
At the time this is being published, the S&P Globex
futures are trading .80 points higher and the bond market is trading up 4 ticks.
On Wednesday, the Nasdaq trended mostly higher while
waiting on the Fed. Then after a brief shake-out move lower, it continued
to rally. However, in the last 30 minutes of trading, it sold off.
Even with the sell-off, the index managed to close fairly
well (a). This suggests we may still have a shot at getting out of this
consolidation. If it can rally, we’ll likely see some resistance around
the psychological 4,000 level.
What’s concerning is that the S&P cash was hit
especially hard during the late day sell-off. This has it leaving a
“tail” and closing poorly (a).
Based on the above, I’d remain cautiously optimistic
on technology and avoid other issues (on the long side) as this situation in the
broader market unfolds.
Looking to potential setups, Tektronix
(
TEK |
Quote |
Chart |
News |
PowerRating), on
the Pullbacks
Off Highs List, began rallying out of a pullback on Wednesday (a).
Continuing on the pullback theme, Extreme Networks
(
EXTR |
Quote |
Chart |
News |
PowerRating)
rallied nicely on Wednesday, reversing Tuesday’s sell-off. This suggests
its uptrend since doubling off of lows remains intact and that it has the
potential to challenge its recent highs around 106.
Genome Therapeutics
(
GENE |
Quote |
Chart |
News |
PowerRating), on the Cup and Handle
List, appears to be finding support around 29 and looks like it has the
potential to challenge its recent highs (around 40).
On the short side, Johnson Controls
(
JCI |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
From Lows List, appears to have stalled out in its rally from lows.
Best of luck with your trading on
Thursday!
P.S. Reminder: Protective stops on every trade!