S&P 500
DJIA
It's not quite time to go all "horns up" folks.
To be sure, the bounce has been "strong like bull." But, as the charts above show, structurally, the broader stock indices aren't out of the woods just yet.
Both the SPX and the DJIA are only just challenging TAOST Magnet Zone™ (TMZ) from below. Price is already stretched to the upside, so beware of getting long here. In fact, don't be surprised if price rolls over and traces out lower prices... in fairly short order.
GS
The Goldman Sachs daily chart shows that today's 10% move higher only pushed price toward significant resistance above in TMZ and a separate long running resistance zone.
The selloff may indeed be over... but make sure price validates such a thought by closing above these areas of resistance.
Citigroup reported before the market's open this morning and rose a bit over 4% over the course of the day. While many market commentators breathed a sigh of relief, pay attention to the $60 area... It should be pretty good resistance.
$AAPL took it on the chin today following their lowered guidance after the close yesterday.
I had quite a few emails and texts asking, "What now?"
There's no easy answer to that question... though I will say that price fell to a pretty interesting level today... and held.
Watch this $140 area for real (if temporary) support. The fact that it's also right at the top of TAOST Low Power Zone [TLPZ] doesn't hurt.
Weekly
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| AAPL Weekly Chart |
Daily
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| AAPL Daily Chart |
Remember that list of small cap ideas TheStreet published as good long ideas back in August?
Well here's an update...
LGIH -- This was the 1 name that looked like it had a real chance given it was bouncing out of the top of TMZ... Ah, but no. Incidentally, TMZ is now resistance.
BZH -- This stock had gotten slammed about 6 weeks prior to its publication as a small cap idea by TheStreet. It was teetering along the bottom of TMZ and after a 1 week Shooting Star style candle, it fell apart.
PBH -- This stock never had a chance... It was below TMZ in August and that never changed...
GPOR -- Price has been held in check to the downside by the down trend line for quite some time.
COG -- This stock also held below TMZ after being turned back in early 2018.
Remember, like "Ball Don't Lie," "Chart Don't Lie..."
