Technical Picture - Markets Mixed

The markets gapped down on European debt concerns and made a fast move lower. The Nasdaq and S&P held above support of Friday's lows, while the DOW breached but held 20 EMA. Selling subsided after the first half hour and it was a slow grind after that, with tech and small caps outperforming.

The S&P carved out an inside day, another hanging man, in addition to the two from last week. Momentum has slowed, but supports are holding and the bulls have been persistent in owning close, so the bulls still have the edge. The rounded topping formation over the last week, however, is bearish looking. Rounded tops imply too much supply. Cautious trading as we await the inevitable correction.

HLS was spotted on the Esignal hot list. I placed the Fib. extension tool from PDC to early swing high and back down to retracement low. A very low risk entry at the base. Took a partial near 62% FE and let the rest run to full extension.

Above average volume indicates momentum. Price/volume contraction ahead of expansion gives us confidence in the setup.

AAPL was also a low risk entry after about 45 minutes of coiling.

SPRD was tweeted by GTOTOY and I followed at the next consolidation level - carved out nice handle.