- Last Friday’s reversal gives us reason to be cautious again on the long side.
- We closed 2/3 of our long position in SPY late Friday at the weak close.
- Today’s close will be important; a weak close may intensify a sell signal while a moderately strong to strong sign would be further bullish.
- The S&P 100 represents around 80% of US equity market capitalization
- Within that index 53% of stocks are currently in bullish patterns – 150 day moving average turned up or is about to
- 25% of stocks are in bearish patterns – 150 day moving average turned down or is about to
Three important charts/trade ideas;
The S&P 100 looks remarkably strong…
Haliburton (HAL) is showing an inverse head and shoulders pattern currently that works to about $33
Pfizer (PFE) while overextended immediate term is strong like bull…
CVC too looks juicy to the long side as long as it can push past resistance
