Seems to be a broadening formation manifesting on /ES hourly, nearing what would be close to textbook completion with 5 touch points between descending trendline & top line. Meaningful break above 4050 would likely invalidate this. The market seems to be teasing a ‘bottom’ from the selloff last week, but could just be a relief rally. The head & shoulders formation on the weekly is unmistakable and has completed it’s formation, need to check volume to see if it’s aligning according to rules.
Premarket seems consumer staples is pushing premarket, IT as well. Be wary of upside moves. The long-term downward pressure on the market along with the bearish broadening formation will likely be depreciating factors on any names that exhibit strength to the upside. better to find something weak & play alongside any market weakness. Exercise caution on the upside.
Consumer Staples
- BABA | Bull flag on hourly from Friday & looks to be exhibiting premarket strength. could see a pop up, beweare level at 89.5, but if this can hold then likely can push to 91. If bull flag pattern plays out should easily surpass 91. Stop should be around 87.
- SBUX |
Real Estate
- Seems to be making recovery overall. Across names there was considerable bounce from depressed levels.
- AMT | Broaching meaningful daily level of 232.25, which could serve as good protective stop for upside momentum. another bull flag on hourly from Friday. look for continuation up to 237.5 at most, but don’t expect it to go that far.
Utilities
- NEE | Approaching coinciding levels, one trendline & one significant daily. There seems to be what could potentially be a wedge formation suggesting an upside move, but it’s not a perfectly built setup. If 70 level can be overcome, look for the continuation to charted levels.
Information Technology
- NVDA | Approaching significant daily resistance level of 180. touched it afterhours, in premarket, at 176 now which is hourly level. potential to use 176 as a stop level for either up or downside. If up, exercise extreme caution at 180.
- AAPL | Above 148 there is an area of relatively little volume & potential for a quick reclamation of 2 points.
Energy
- XOM | In gap fill area, oil /CL hovering around 110 level. look for continuation of fill, but beware, wondering why it didn’t fill in premarket & if this is sign of weakness
You are prepared enough, but don’t over index this ‘preparation’ for infallibility. Things look bearish, but trade with caution. remember damocles.