March 24th, 2016 Watch-list
Evening traders! So we've now seen two red days in a row for the overall market and are starting to see the daily indicators for both the DJIA and SPX charts head downward. The weekly charts, though still heading upwards indicator wise, are starting to show slight weakness. The next few days will be key. We've seen a few false market pullbacks in this big run where the market has fallen for two days than simply rallied higher. Ideally, in order to confirm a pullback, we'd like to see the DJIA hold below the high today and form another solid red day tomorrow or Friday to close out the week red. If we can do that, we may see the market make a move down towards the 20ma for the DJIA. Both the SPX and DJIA daily and weekly charts are below with key support and resistance for you to review.
Current Below $20 Plays:
XXII: Unfortunately many stops were hit on this one day for those who were able to take an entry on the 21st. Had given us a nice move a few days back, but the selling pressure is still strong on this one. We'll be removing this one from watch for now.
EGHT: This one was red for a portion of the day, but ended up rallying and finishing the day up 0.86%. It's good that we saw this one move back into the green following the two red days. Next key break is the high set on the 21st of $9.68. After that we have the 200ma. Keep your 1/2 stop set.
SDOW/SPXS: Both of our inverse market ETF's are starting to see decent moves with the overall market coming down. 4/4 indicators curving up on both charts. Very simple with these two plays...if the market continues to fall, they will continue to move higher. Everything is technically set up with the market coming down and these two rallying higher. As we've learned in the past however, that doesn't always happen no matter how solid the technicals are, so have your 1/2 stop set if you entered.
TVIX: We started to see this one set a base on the 15min chart yesterday, and today we saw a nice topside rally. This one, very similar to SDOW and SPXS, will move inverse of the overall market. If we can see the DJIA and SPX continue to fall, we should continue to see this one move higher. Next key break is $5.42 (Looking at the 15min chart nearest resistance). We want to continue to form higher highs on the 15min chart. For those in, have your stops set. This may just be a 1 day pop. We need to see further confirmation to close out the week before my overall confidence will rise.
DRV/SRS: Both of our inverse real estate ETF's have been on a nice move these past few days. 4/4 indicators curving up on both charts. At this point, I'd recommend moving your stop loss up to within 1% of your entry price. Next key break on DRV, $17. For SRS, $43.