- Setting up for a "rounded top," which was a theory I heard earlier today.
- Constantly retesting the $SPX on considerable strength and preparing for a breakout above these levels.
Take a look for yourself:
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$SPX 60 Day, 60 Minute
I created charts on my three short positions (TZA, SRS, and FAZ) as well as the two long, swing positions I've been concentrating on (UYM, TNA). Below each chart are annotations about the chart and the ticker:
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TZA 20 Day, 30 Minute
Bottom Support in @ $49.32. Watch descending price channel in relation to TZA's volume accumulation. Watch even more closely for TZA consolidation/sideways trading between the Bottom Support and Resistance #1 ($55.32).
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SRS 30 Day, 60 Minute
Bottom Support in @ $48.95. Today's short lived buy spike stayed within the bounds of the negative trend line that started back on March 6. This push off of the trend line allowed SRS to pull back to Support #1 ($53.26). Watch for volume accumulation, preferably in the way of a price-to-volume convergence relation. If this occurs and holds the Bottom Support, keep your eye on an SRS breakout.
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FAZ 20 Day, 30 Minute
Bottom Support in @ $18.41. Major volume convergence with price spike over the past several days with a large amount of volume accumulation during today's trading session. Watch for a breakout in the near-term that could continue if $SPX levels begin to diminish.
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TNA 30 Day, 60 Minute
Resistance #1 ($18.84) is very strong. Watch for a rounding top pattern (as discussed above) OR a breakout above Resistance #1 with an appropriate volume accumulation. In my opinion, if there is a lot of volume over the next couple of days, you'll probably see a strong distribution. Resistance #1 is very important at this stage in the rally for TNA!!
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UYM 30 Day, 60 Minute
As for UYM, Support #1 ($12.16) is very strong. On the contrary, the retests to this support level indicates a possible move lower. Look to the following if the price doesn't show anything:
- Volume Accumulation
- Price-to-Volume (whether the action shows price convergence or divergence)
- Positive trend line breakdown
Other names to watch tomorrow are GLD and STLD. STLD is nearing its $9.16 resistance, which sets it up for a either a healthy pullback candidate or a breakout candidate. If GLD picks up a lot momentum on a down $SPX day tomorrow, be in for a wild rest of the week as that move should indicate to traders that people are beginning to take a side on the market. As of now, the market is "sideless," not sure as to where the direction of the market may go. Tomorrow is an important technical day for the markets to surpass.
Keep your heads on a swivel.
ZM
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