Intra-day Action
Well it looks like the stats spreadsheet I had been working on the past 2 weeks was actually a pretty useful tool. Nice prediction of this sell off here. The most important lesson from a technical perspective during this time was the whipsaw consolidation period in the S&P. The spreadsheet pointed towards a drop from the range, which it did. During the same day the market rocked out all day, with a surge above the same range the following day.
The surge north was on very small volume. Here is the chart, and I feel it could be useful in the future to determine the top/bottom of trends.
About time too
I would be more satisfied should we close below 100 2 days running.
Charts that looked interesting on Monday night were: CPB, WY, CX, PCP, AA, CMI, EMC, WHR, MRVL, DAL, CHL, CBS, TWC, WAG & LVS.
EMC, WHR & DAL remain interesting. I am reminded yet again of just how straight forward the smaller airline trades are just now from a technical perspective (JBLU and DAL).
Strong consolidation range
DAL double bottomed off the 50ema (daily) at support range for a wonderful 3 day candlestick pattern
On the EMC chart, I am watching the $15.40 level which has been prior resistance and is now being tested as a double bottom on the 30min/20day. The breakout was on strong volume, and the trading has been light the past 2 sessions with a small range.
Inversely, WHR broke out nicely, hit a nice first time retest at $62 but has not dropped below and is testing that price as resistance with a nice bear flag pattern. The volume is light, and a break below $60.50 would be another nice area to catch a short.
