Technical Picture - Consolidation

Stocks opened on a firmer note following some favorable overseas debt auctions offsetting yesterday's concerns. Leading stocks paced higher topping out around midday when the DOW failed to confirm higher highs in the Comp and S&P. Stocks pulled in slightly ahead of the Beige book which was a non-event. Choppiness ensued into the close.

As we can see from the S&P chart above, we are flagging at the cusp of the down trend line in the upper range of last week's flag pole. However, many momo stocks such as AAPL (chart below) and GS are testing resistance from the August highs. Also, I'm seeing a number of long upper shadows on the dailies of my WL.

The CREE short setup was highlighted by Steve Place on Stocktwits TV yesterday. Short on break of ORL. Price closed at the round number $50.00. Other names breaking down with volume today include V and MA.

FFIV tested resistance from last two sessions. Placed my Fibs from the low of the outside day to the upper base. Missed my exit when price suddenly reversed just shy of the target.

MTL was a HCPG pick from last night. I ignored the false BOs and placed my fibs on inside support/resistance. Worked out perfectly for a full extension.

NTAP broke resistance and rallied two points. Now it's really extended. We have a mini double top on the 15 minute timeframe. I'd like to see a retest of the base at $45.00. Could setup up a fast move lower on a trendline break.

Also watching gold names as they retrace back to their trendlines.