Two Possible Shorts And A Long For Today
As the market continues to digest last week’s
selloff, it would appear that yesterday’s failure to move above 909
will signal lower prices in the next session or two. Barring a big upside
surprise with this morning’s Retail Sales and Initial Claims, the 894 level will
be target number one on the opening. This level has offered some excellent long
entry points over the last few sessions, and I suspect it will continue to play
a pivotal role for entry points this morning.
As I had mentioned in
Monday’s column, the path of least resistance for the S&Ps was to seek out
the 881 level if the 894 level was taken out. Upside resistance is seen at 909
and 916-17, and if those levels are taken out, you have to respect that and
expect a further run higher (934) over the next few sessions. The data that was
just released was pretty much in line with expectations, although jobless claims
did increase more than expected. There has been little reaction in the futures.
Depending on which way the futures eventually play out this morning, I am
keeping an eye on a couple of stocks to play that direction. From the short
side, keep an eye on:
ACE: A move below 32.20 would be a
negative (breaking the 30-minute trend channel) with a push down towards 30.50
not out of the question.
MEL: Look for a break of 27.75 which may
invite some sellers for a move down towards 26.80.
Long:
ACS: Look for the stock to clear 49.30,
this should clear out some overhead resistance.
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 920 | *1057.50* |
| 916-17 | *1046-49* |
| 913 | 1034 |
| 909 | 1027.25 |
| 906 | 1020 |
| *902-03* | *1012* |
| 898 | 1005.50 |
| 894 | |
| *886* |
* indicates a level that is more significant
As always, feel free to send me your comments and
questions.