It was a pretty slow week in the indices with only a few names participating at a time. The NASDAQ and Russell 2000 are still holding their intraday trends for the time being. Russell still has support from $120 to break even area and the NASDAQ has $106 area support. These are very generous support areas for buyers, meaning they have plenty of room to step in between where we are trading now and the support. A test of these support levels would break the intraday trends but if buyers can hold control above the supports then we may be set up for a new run. That's what I'm looking at for the downside potential, upside potential would just be continuing to hold the trends.
This week we are looking at the respective intraday charts. Russell and S&P are in 65m trends. The NASDAQ could be looked at as 30m or 15m, either way the immediate support from this week is the important area to watch. If that support is broken and we get a lower high below it, then we enter no mans land between the break down and the $106 support. Possibly some good day trading opportunity to come from that but that's as far as I would take it to the short side for now. An ideal continuation would be to hold support, take out the highs, and support a higher low afterwards.
The watch list this week got a bit smaller as trailing stops were hit and profits were taken. A trailing stop being hit usually doesn't constitute taking the ticker off, but in this case the watch list needed to be cleaned up to focus on current positions and fresh setups again.
Right now I'm finding just as many good short setups as I am long. But I don't trade both sides of the move so they are ignored. I like focusing on the big picture and it is clearly moving up. That's about it for this one, thanks for reading
03-01-15 Watchlist Analysis - Link Here
-Michael
