Buyers ended the week on a good note, closing
weekly hammer candles near the highs. During the week buyers did a much better job of holding and triggering stocks, which was a nice change up from the choppy markets we have been in all year. The Russell 2000 gave a
clear level ($123.25-$123.50) for buyers to get above and hold higher highs and lows to reverse the intraday trend, so far they have been successful. That will be important next week to watch for continuation. The
NASDAQ isn't as black and white as the Russell but $110 is still the level I'll be watching for buyers to get through. S&P and Dow Jones need an intraday trend to hold into all time highs. If we don't get any follow through or just fail altogether there is nothing to trade since sellers have nothing set up.
Looking at daily charts it's clear that even with all this chop this year, buyers have still held price in the big picture bullish areas in all indices, which gives buyers a chance to get set up and make a move. That's what has been happening in my opinion. Russell right now is showing the clearest signals to follow so that's going to be my benchmark index for what's going on next week in addition to the NASDAQ. That's about it for the indices so moving on to the watch list...
The bulk of the long side of the watch list really didn't change that much aside from adding a few names and taking out one or two. There are some nice trends going in these names and how some are set up lines up with how the indices are setup right now, so if bulls can hold it together things are looking good for some bull action.
BMY, UTX, RAD, CF, DOW all have some nice potential from here to be triggered. Names like ADBE, AKAM, NKE, SBUX, MA, EBAY, REGN even FB looking for some continuation buying on pullbacks. So that's about all I got, will post some charts on stocktwits and twitter. Thanks for reading
-Michael
