There is a decent chance the Nasdaq will find support here after testing the October lows as mentioned last night.



DT

Poker night so I will keep it short. It looks like the Nasdaq will test October lows as soon as tomorrow.

Here is a chart showing the recent breakdown. We could double bottom, but at this point it's better to wait for this to resolve itself, or scalp some short plays.
Here is the sp500 chart. As you can see it's in much better shape then the Nasdaq and is still in the long term price channel. It looks like the Nasdaq and SP500 could both find support at the same time increasing the odds of a bounce. Keep an eye on these support levels tomorrow if all the bulls throw in the towel.

Good Luck,

DT

The major indices gave back all of yesterdays gains and then some. While volume was lower, technicals were pretty negative. The Nasdaq looks like it will retest June's lows with most techs looking extremely weak right now. Here are a few charts to check out.

POWI just fell out of a channel it was trading in, and may have a quick run down here.
VOL may find support at the 20sma.
ATHR looks like it is forming a bear pennant up to it's 200sma and previous trendline.
BWNG just fell under a large support area.
CTXS is hovering near major support. They may get a bounce back to the blue descending trendline, but they could just as easily head down here.
XRTX hasn't broken the support line and 200sma yet, but it is looking like it will. ADX is curling up here.

If we manage to get a bounce tomorrow, take a look at some of my previous charts from this week such as eye, celg, cldn, tzoo, etc. Otherwise, we may be in for continued weakness in tech stocks.

Good Luck,

DT

The markets rallied off their lows today and the Nasdaq held support near 2100 again. The fact that semiconductors led the way bodes well for the indices as they have been the real drag lately. There are a lot of hammers on the daily charts again and there are some decent looking charts around.

SUG looks like it may find support at the breakout area.

KSS is holding above the trendline and looks like they may bounce here.
ADS has been pulling back nicely and the ADR is narrowing.
BIDU continues to trade this tight range and should have an explosive move to either direction, although a bullish move is more likely.
HBHC looks like it will breakout out of this triangle base.
HLTH had a nice volume increase today as they held support.
PFG has come back to the breakout area and is offering a decent entry.
CHRW is also looking like it may hold support near the blue trendline.
LVS is another one coming back to test support at the previous breakout area.
IBCA has been consildating for months now, and may be ready to clear this base.

Let's see if the markets follow through over the next couple of days.



Good Luck,

DT

I can't overstate how weak the Nasdaq tech stocks have been. Chips have been a real drag on the market and the Nasdaq was the first index to breach the lows of the Fed day rally. We are close to seeing if the markets will rally in July or if the downtrend will start to pick up steam again. Here are a few charts to check out.

FMD had a pretty nasty drop last week and it looks like the dead cat bounce is over.
OII may be getting support witnessed by the spinning top at the 20sma and previous breakout area. Spinning tops are a candles that have long wicks and small bodies. They signal indecision which can be an early clue that a trend may be ending.
AMLN wants to break resistance and were pretty strong today.
NWRE is stalling fairly quickly after trying to retrace into the gap down.
CHH may be breaking out of a bull flag here.
EYE formed a doji at support via the trendline and 9ema today. This could be a signal that they will bounce back here.

Good Luck and be extra careful the next few days.


DT

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

I will post my regular update tomorrow morning.

DT