It feels like we will test SPY $134.00 in today as ES_F is printing a lower low in pre-market. All eyes are on this level. If it doesn't hold we have a small bullish gap support area just below. The level of strength of the kick back rally will be telling.
After breaking out of a bearish rising wedge, the SPY corrected to the first minor support level and bounced in the last hour to trim today's decline. The Nasdaq corrected more sharply on higher volume resulting in a distribution day. Most technicians expect a retest of SPX 1340 (former resistance) to come into play.
The SMH retested resistance and is now pulling back on light volume which is constructive. Bullish gap support might be tested.
Th parabolic SAR sell signal for silver ishares triggered yesterday as depicted on the chart above. High volume selling over last two sessions.
CTSH was a failed BO yesterday, and today's gap down and breach of support, set up a good shorting opp.
The best part of the CTSH trade was the reversal long after price formed a perfect, low risk handle on the 1 minute chart below.
ARMH, another failed BO from yesterday, set up a short on break of well defined support. Took a partial at gap support, but eventually it failed. Covered balance as price approached complete gap fill. Not much of a bounce after such a big move.
In the end, I hesitated and decided to go long weekly S1 which is much closer to $51.00. I took a partial midday. 
I'm three for three with SU, but still not holding overnight because we keep printing lower highs and/or lack of volume.
TCK breached my initial, narrow support target on the open, so I decided to put this name aside and wait to see how things develop.
I took TCK long on a NRB, low risk, entry as depicted below. I took a partial at resistance, but it just kept on going on accelerating volume, which was perfect for my swing strategy.
MCP printed a few NR7s and carved out a NRIB (narrow range inside bar). Took it long on break of small handle or base. My target was a retest of the intraday high. Not very fond of MCP as it can get really erratic at times, so just take the money and run.
The markets gapped down on weak earnings (CSCO), ignoring the better than consensus initial claims (383 vs. 410). As we can see from the S&P Emini futures chart above, we filled Monday's bullish gap and reversed back up to fill today's opening gap. BTW, a must read in the morning for a good take on the market is Gtotoy. His outlook this morning was spot on.
The $USD looks poised for more upside.
GLD has filled the bearish gap and now looks like it is forming a bearish wedge. If the situation in Egypt worsens, gold could be in play. There are two factors at play with gold, safe haven in troubled times, and higher interest rates which dampen gold luster. GLD gapped lower on the open because of the good claims data, which in turn led to higher interest rates and lower bond prices. I still think GLD has to go and test the 200 DMA before we get a tradable bounce.
Today's trades were the same usual suspects as yesterday. JDSU, FNSR, and AGU tested short-term range supports on the open and bounced. JDSU sold off in the afternoon and probably needs a rest.
RL is consolidating the earnings gap. I'd like to buy it if it retests short-term range support at $124.00 and bounces.
CELL and TUP are bull flagging. TUP printed NR7 today, so we could get expansion tomorrow. Also, don't forget SWK which is still flagging.
V had been consolidating the previous week's drubbing in a narrow range under $69.00. Placed a buy stop order at $69.05 which was triggered about 5 minutes into the trading session. Price rallied up to and above the weekly R2, but couldn't hold, so I took a partial. The next rally brought us above $71.00. When that level couldn't hold, I folded the balance of my position.
After a gap down and swift move lower, the NQ e-mini futures formed a cup & handle base. Took a long entry out of the base, looking for a gap fill.
TCK - Buy bounce from support and sell into resistance. Define your trigger when buying support because you don't want to catch a falling knife.
The markets gapped higher on the open, but the gap was quickly faded. Prices extended lower, beyond the gap fill, to first level supports. Prices stabilized and started to rally mid-morning, eventually extending to fresh 52 week highs. The S&P tagged 1250 which is the full measured move of the inverse H&S bottom from last summer as depicted on the chart above. The DOW did not confirm as it was dragged down by AXP weakness on a downgrade.
$USD still strong.
Oil has carved out a bull flag and looks ready to BO. A full measured move on a successful BO, should see $97.00.
CNQ flagging.
Copper and coal are bullish and flagging.
AMRN reached the full measured move of the bull flag pattern today and I sold more shares. I'm still holding 20% and will add to the position on a pullback. There's no resistance on the weekly timeframe until we reach $10.00.
AMZN was a HCPG pick. I waited for a low risk entry after the retest of the BO point. Did not want to trade this on the open (too risky). I'm glad I waited.
POT - buy support and sell at round $ level.
CHK was an ambush trade.
The markets gapped higher on the open, but the gap was quickly faded. Prices extended lower, beyond the gap fill, to first level supports. Prices stabilized and started to rally mid-morning, eventually extending to fresh 52 week highs. The S&P tagged 1250 which is the full measured move of the inverse H&S bottom from last summer as depicted on the chart above. The DOW did not confirm as it was dragged down by AXP weakness on a downgrade.$USD still strong.Oil has carved out a bull flag and looks ready to BO. A full measured move on a successful BO, should see $97.00.CNQ flagging.Copper and coal are bullish and flagging.AMRN reached the full measured move of the bull flag pattern today and I sold more shares. I'm still holding 20% and will add to the position on a pullback. There's no resistance on the weekly timeframe until we reach $10.00.AMZN was a HCPG pick. I waited for a low risk entry after the retest of the BO point. Did not want to trade this on the open (too risky). I'm glad I waited.POT - buy support and sell at round $ level.CHK was an ambush trade.