Ugly Charts

In the Sunday Stock Talk I like to scan the charts and get a feel for where I think we are headed in the upcoming week. The scanning I’ve done tonight is looking pretty ugly out there. With a gap down last week that was unable to take back the open and closed on lows the overall market looks like the weekly sell setup is getting some pretty good traction, and could continue to lead us lower. There is a level just below here at 4350, and if we lose that then there is nothing else for 100 points. That will be the first real test on the week for the broader markets to see if we get any reaction from there, or just continue to break support. Earnings will be a big factor and it’s a pretty broad array of names this week such as $BAC $SCHW $JNJ $LMT $NFLX $IBM $IBKR $TSLA $AA $SNAP $VZ and a few others, but just that list alone is ALOT to watch.

At the moment I only see a few names in an uptrend and that is $CAT $DE $CRWD & $LULU but at some point even strong names will fall if this market gets smacked. Which depending on some of these bigger earnings names is what I think might happen. However I’m not going to step in front of these earnings names, because as we all know the market can completely surprise at any time. I will however start to look for longs up over 4429 – 4452.50 and shorts are on the table if we break the 4350 support level, but really between there is kind of a toss up as to what the action is going to look like, so I’d rather be patient. Sunday night futures haven’t opened up just yet so I can’t quote anything from that, but with some banks reporting before the bell on Monday I think that will be more important anyways than the Sunday open.

Let’s have a great trading week, and remember that it only takes 1 good earnings trade to make the week or even the entire month, so no A+ trade setups are on the way.