Good evening. In this post I will cover the bears case and the bulls and what needs to happen for each. However, before I do that I will cover a few select stocks –
Apple ($AAPL) still in a downtrend, we do not pick bottoms. Leave it alone, unless shorting.
Amazon ($AMZN) was pretty strong today but still has alot of resistance above and is in a downward channel, I do not like it for shorting or longs.
Google ($GOOG) still does not look too ‘hot’. Google really looks like it is going to be shortable on a WEAK bounce. Not something you won’t to be really investing alot of time in right now.
Boeing ($BA) held higher today and looks ready to bring higher out of the channel. Liking it. Alot.
Home Depot ($HD) is trying to break out of a nice base/channel. Showed strength recently and it could be ready for NEW highs.
Dunkin’ Brands ($DNKN) did not consolidate today but instead went higher. I still think it needs time to consolidate before heading higher.
Now onto the details —
Bears: The bears would need for one, the $SPX to go down tomorrow. We could be forming a right shoulder in a head and shoulders pattern but then again it is not smart to trade off these patterns until they confirm. The bears would also need the financials to weaken again – $XLF has been pretty strong. Combine these two, and a correction will come.
Bulls: The bulls have a simple task at hand.. hold higher. Tomorrow. If the bulls are able to ‘hold higher’ tomorrow above the 155.65 level then we are likely to be heading higher and breaking this consolidation time for a new leg higher. The financials would also need to continue to show strength (they have came back a little now).
Overall, I will wait til tomorrow to see what is happening, and what is triggering. Patience y’all. Patience.