Choppy Friday

FSLR forming a continuation symmetrical triangle. Today, in early trade, it formed a base at the edge of the retracement zone of the PDH/L for a nice thrust back up to resistance of yesterday's shooting star.

SOHU and IDCC - inverse C&H - very slow and wide spread at times, so cover in the retracement zone because there's support from previous days.

I shorted the failed BO of POT. Covered when it broke back above narrow base. Re-shorted the ambush (62% retracement). Partial on hiccup at 50% FE and covered on higher high. Then it formed a H&S top and ripped 2 points lower, but I wasn't there.

Technical Picture - Broad Based Advance

The markets closed near session highs following another broad based advance. The advance was helped along by earnings and a satisfactory treasury auction. Tech outperformed with solar leading, along with big tech names. Another accumulation day for the NASDAQ as prices near full retracement of the Feb.- March slide. Financials held and printed a NRIB (NR7) on the day. I see some C&H patterns forming on dailies in health/biotech (HUM, AMGN, CEPH). Technicals are extended. I've added the McClellan Oscillator (NAMO) to the bottom of the Comp chart, and as indicated, we have an extreme overbought reading. As John mentioned in the comments, probably much of this is due to month/QTR end window dressing given the exceptional bounce off of the lows.

Solars Rule

Solar complex gapped up this morning. All of these gapper trades have the same characteristics - bullish shallow rounded base, NRBs, and big volume on the expansion. The traditional (old style) Trader-X gap long is back. Must be the start of a new bull market! Place fibs from PDL to ORH or early reaction high.

YGE from Briefing.com; FSLR from WL and PAYX (not a solar) from Trade-Ideas scanner.

Technical Picture - Fractional New Recovery Highs

Markets gapped up on favorable economic data, but after setting fractional new recovery highs, they chopped around and eventually succumbed to weakness with steady selling from midday to the last hour, where prices reversed and rallied into the close. As you can see from NASDAQ futures chart below, buyers stepped up when prices came into gap support. The CPC has printed a higher low and is moving back above extreme bullish zone - this could foreshadow more profit taking to come.




Gold is forming a bullish falg versus the $USD which is forming a bearish flag.

Cup & Handle - Myriad Genetics, Inc. (Public, NASDAQ:MYGN)

MYGN gapped open and sprinted higher. The gap and early thrust consolidate over time with several inside bars. Volume contracts as the handle forms just prior to expansion. Partial after 3 WRBs and exit when price gives up the 50% FE of the ORL to the base.

JPM and WFC gapped up and chopped around the upper retracement zone of the PDH/L. After carving out lower highs, they submitted to the sellers.

SOHU - 2 IBs before continuing pullback to the retracement zone of March 19th gap day trading range.

Technical Picture - Markets Falter after Retest of Highs

Fractional new highs for the DOW and S&P, unconfirmed on the NASDAQ, before faltering and selling off in late afternoon. I see gap support as depicted on the XLF for both the S&P and NASDAQ futures. The NASDAQ appears stronger as it has yet to break the trend channel. I'm expecting more weakness by virtue that XLF and S&P failed to recapture their respective channels.

Overbought Trading Opp - JPMorgan Chase & Co. (Public, NYSE:JPM)

Yesterday, I missed most of the morning session, but was able to catch a few C&H patterns in the afternoon. JPM was my favorite with a parabolic like finish into the close. Today I placed my fibs to cover the last leg up to PDH. Price opened in the retracement zone, and eventually made its way back up to PDH, edged above it and came back in quickly, setting up an overbought short.

GS continued moving higher in early trade, but after a lot of choppy sideways trade along the outside edge of its upper channel line, it came back in for a quick short.

SOHU was a gap short last week and I placed my fibs from the ORH to the low of that day. Since that day, it has consolidated in a narrow range below the R-zone. Today, it gapped lower, but held support and rallied. Eventually, it printed NRIB NR7, for a low risk long. I took a partial at the top of the retracement zone and stopped out on balance.

SOHU could break down on next test of lower fib. line, so set an alert.