Markets at Crossroads

The Markets are at a crossroads again after failing to make a higher high and stumbling at resistance. This is a good place to stand aside if you are averse to shorting as the markets could chop around or accelerate to the downside. We won't know if the downtrend is resuming in full force or if we are testing support until the previous lows are taken out decisively. There are key levels to watch and one of them is the indices Pre Fed levels. With earnings season kicking in today, markets will be keying on guidance. Here are a few charts to watch.

Here is a weekly chart of MTH. Homebuilders have some nice divergences on the daily chart, but price action is saying there is still some room to go down. The target for the head and shoulder top on MTH is in high 30's.
CELG bucked the trend on Friday and is just shy of a 52 week high.
CLDN is forming some nice tails on recent candles showing support near breakout area.

KSS is consolidating near the breakout are. Looks like it will touch the line one more time.
ANDE may be failing at this previous support trendline.
BAS ran into some steep resistance at the 50sma.
MYOG has been trending nicely down this expanding channel and looks like it will head to previous lows.
WIRE also stopped at previous support and 50sma. Watch to see if it breaks the short term rising trendline.
ARGN is hovering near support and could be an attractive risk vs reward long play here.

A coupe other items to note. HANS 4 to 1 split is effective today. Also, watch AA (Alcoa) earnings today and possible sympathy plays in AL,CENX,SCHN,PCU,CMC, etc.

Good Luck,

DT