This Week’s Price Action
- Inverse H&S remains in motion in SPX and Russell
- SPX seeing throwback type bull flag
- Potential for a bit more short term weakness based on chart above, if flag doesn’t break here. But larger bullish technicals still remain.
Charts of US Indexes:
Still meat on the the bone here. 147.66 target.
It will be important for the NASDAQ to take advantage of these bullish setups, and not roll over out of this rising wedge that many are talking about. It’s setup for a big move higher here if it can breakout of these patterns.
The Bottom Line:
We have been seeing some post breakout consolidation of late but very little to not be continuing to trade to our upside targets. Bullish technicals remain in motion in 3 of the 4 US Indexes (Dow, IWM, SPX). Nasdaq is the only one that hasn’t broken out as it continues to consolidate. Below are some setups and charts I am watching in the days ahead.
XBI – I pointed out the risk of the repeat patern here. A failed breakout followed by several more weeks of weakness. We’ll want to see a change of that pattern first in order to be buyer again, otherwise wait for lower. A restest of the 80 level would be in the cards if buyers don’t step back in quickly. However you don’t want to be long a failed breakout. From failed moves come fast moves. This was one I was long and took profits Thursday when the breakout failed.
GLD – This one still needs more time. Watch for pullbacks to the trendlines for best entry on the long side.
SLV – At the vwap from the previous low. But continues to be rejected by vwap from 2016 highs. needs to clear that to be a long.
QUOT – May need another week or so, but this is the weekly chart. Watch the lower time frames for entry and next move to 20.
RICE – I see two trades here. For short term swing traders, you could use the small cup/handle. However that is alos the handle for a cup/handle.
Looks like it will be an excellent buy above the vwap from the gap up.