Well what a difference a day makes. The chart below gives you a good read on what has been going on. As you can see, The S&P put in sort of a middle double bottom (which is the green arrow) on or about July 25. It proceeded to bounce viciously to the upside for two days before giving much of the move back between Monday and Thursday of last week.
As you can see there is a mini horizontal resistance (small white horizontal line) which sows that Fridays close was slightly higher than the high that was put in Monday before things fell apart.
What everyone wants to know is what happens now. Well if you look at the top of the channel (white ascending top line) it may be telling is that it can tag the top of that channel (red arrow) which is also horizontal resistance and the high that was put in back May (see horizontal yellow line).
So bottom line we could tag those My highs as early as this week, before we get overbought again and sell off.
That level is roughly the 1420 level for the S&P.
I’ve added six long set ups to the swing list tonight. Please check the P&L for entries and stop levels. I have also rolled over the July P&L to August.
The stocks are:
EA- buy the 12.40 level
FIRE- but between 44-45.80
NDSN- buy the 53.21 level
PTEN-buy the 16.37 level
X- buy the 22.10 level