Information Technology
- Bounced at old trendline that had formed wedge, Gapped down overnight, showing tepid strength in premarket, but /ES holding above key level could encourage demand here. Could be day of churning.
- ORCL | Gapped down & holding just below hourly level. Below is considerable gap area & this level may serve as good risk management point. 5-10 shares is appropriate size & if market strength dissipates this name will likely suffer.
- NVDA | Gapped down below 160 daily level, looking to open right near it. Could be good risk management level to play from, similar to ORCL, if market strength dissipates & NVDA pushes below 160 looks like there’s potential for downside. Seems to be considerable demand at & below 160. Exercise caution, could be churn day.
Energy
- Potential for index to hold at 80 level. Gapped down, but looks to be demand manifesting here, with strength in overall market this could hold.
- CVX | Gap down & opening near 161 level. Could be good level to play from & bias would be to the downside, but there is not abundantly clear evidence that move will manifest in either direction. Exercise caution, may be no trade day
Communication Services
- Gap down & index not far from yearly lows, had bout of redemption yesterday
- VZ looking to open just below significant 49 level where in a rejection would seem reasonable, however name is exhibiting premarket strength. A hold above 49 with meaningful volume & market support could see a push further. With market seeming to show considerable defiance from 3700 level on /es & pushing up still, looks like there is evidence to support upside bias above 160.
Consumer Discretionary
- Redemption yesterday with a green close on healthy volume. Timid strength in premarket holding above low of 136, holding above 138
- TGT | Strength in premarket & holding above meaningful 144 daily level. Gapped down 3-4 points, if strength remains in this name & in overall market this looks like promising play to the upside with a decent level to trade from. Best prospect so far still not 10/10. If break below manifests with weakness in market, Could see drop to at least 143, then 141.7. If you manage tight stops, it’s reasonable to trade 10 shares, but unless direction is clear, better stick to 5.
- HD | Opening near important 275 daily level which can serve as good risk management point. Gapped down, if meaningful strength in market then this gap seems easy to fill, however, bounce yesterday off 275 level manifested on average volume. If Market doesn’t hold & this name pushes below 275, could easily see drop to 270. 5 shares & exercise caution
Utilities
- Shellacked across the board, all exhibiting similar looking charts. Looking to be finding some support, but looks like it will be short lived considering the strength& extent of the selloff
- SRE | Nice area below 142 to 139 that looks like it could be easily exploited once threshold is broken through. Keep an eye on it for downside. Upside prospects look grim for the time being.