I’m a dip buyer in this market, and more convinced 1100’s are coming.

This is not a chart you want to be shorting.

Expect sector rotation into companies that dig, build, and produce things like food.

Bigger pharmaceutical companies look ready too.  PFE held up well in this pulback.  LLY has a weekly double bottom and long base.

I believe we’re going to climb higher into year end with the sector rotation into bigger caps.  Yesterday small caps were lagging, and if you compare the Dow with the Russell 2000, you can see the hit small caps took.  It’s about time for tax loss selling to begin.  Many of those small caps that recently ran will be taken to the woodshed.

closeup…

Tomorrow (Wednesday), we have an FOMC announcement that will get things moving, as well as the Employment numbers on Friday morning.  It felt like sellers were drying up today.  I’m taking this market one day at a time.

The spooz closed the week near support around 1035.  Stochastics have become quickly oversold, and another snap back up could occur this week.  The 50dma is near 1050 and would likely stall a rally attempt there.  On the downside, 1010 should act as a major support area.

I was watching bot TZA and TNA this morning, along with the spooz.  When I saw TZA try and head higher on the 5th candle, but quickly fail, I had the signal to go long TNA and TYH.. or other ETF longs I trade.

The spooz was in the same pattern, and acting bullish.  I was looking for lower low candles as stops.  There were none until 1058.

The e-mini SP500’s have built quite an ascending wedge over the past 8 months with two tests of the long-term trendline.

Today, on the 15-min chart the e-mini futures rolled over.  Note how the move went for seven candles before reversing.

I’m currently waiting for a retest of around 1074 (that’s the long-term trendline from the chart above) to remount some ETF shorts, such as TZA and DTO.

I really don’t want to buy intraday breakouts, but little dips in those ETF shorts.

EURUSD was whacked this morning.  I’m expecting 1.46 there this week, which means we’ve got some more downside in the market.

Commodity stocks should take a hit.  XOI.X should have held 1096.

There should be a few bounces, which should be sold into, or shorted I believe.  1040’s is a probable target for the e-mini futures this week.

Good Luck.

Yesterday was the first decent pullback in the stock, but offered no suitable entry.

Today, we had an entry on the 5-minute chart.  Support near 22 held.  The stock retested support, and bounced.  The stock is consolidating here in the upper 23’s as I write.  AONE is one that could get back to it’s highs.

Under 22 could be a head and shoulders breakdown, and provides a firm stop.  Entry could be taken on a higher-high 15-minute candle.

The SPX bounce off the 50dma in July carried on with a very nice rally.  What will this bounce bring?

A bounce for the XAU off the 50dma Friday had carry over into today.  20dma just above.

Even air biscuits bounce.