Let The Music Play
On Wednesday, the Nasdaq opened flat and after a brief sell
off, began to rally. However, it found its morning high fairly quickly and then
began to trend lower until early afternoon. It then gained footing and rallied
to close near its high.
The fact that Tuesday’s low held is, to quote Martha (who
ironically was on the telly earlier), “a good thing”. Use this low as
a reference support level to the downside with the 50-day moving average/2100 as
resistance to the upside.
The S&P outperformed the
Nasdaq and also closed on its high.
Tuesday’s low also provides a
reference level for support. And, the 50-day moving average/1240 a potential
resistance level.
Considering the above, keep an eye on Tuesday’s lows. The
longer they hold, the better.
Tonight (Wednesday) we have some timing signals kicking in:
From the Market
Bias Page, these include a Trin Thrust, a CHADTP and a CVR VI. And, from
those I follow, a TRIN Reversal.Â
So what do we do? The above action suggests that we could
see a tradable bounce over the next few days. There’s no need to bet the farm as
we remain in a bear market. However, for the nimble, this may provide an
opportunity to play the long side. Just make sure you have a chair ready for
when the music stops.
Looking to potential setups, Covance
(
CVD |
Quote |
Chart |
News |
PowerRating) look like it
has the potential to resume its strong uptrend out of a pullback.
Forrest Labs
(
FRX |
Quote |
Chart |
News |
PowerRating) has
pulled back to its high level saucer formation. The fact that it seems to be
finding support here suggests that its longer-term uptrend remains intact.
Pharmaceutical Product
Development
(
PPDI |
Quote |
Chart |
News |
PowerRating) looks like it has the potential to rally out of a high
level cup and handle.
Best of luck with
your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“..I bought a lot of books, but
sincerely, Dave Landry on the Swing Trading is the best…”
Ilidio F.
Portugal
No risk,
30-day, money back guarantee.
Â