Earnings Kickoff

OPEX week ended up turning into a bit of a tricky week overall, but at the end of the day we do have some information to take from the action. We didn’t get the rally up into 4,000 as I was expecting, but if you take a look at the weekly chart we did try to go lower, and then end the week with a pretty big bottoming tail. It will be hard to play shorts back into that action as we have seen it hold now for about 2 months. At the same time it would be nice to see the daily take a break and give us a chance to see a breakout into Tuesday/Wednesday. A hard run out of the gate on Monday would make longs a bit tougher as the week goes on, but I do have some levels to watch for higher prices, and in the event we do turn red.

To keep it simple, up over 3876.50 is bullish with room to 3935.25 and then 4026.75. Below 3822.25 and we could end up back down at the lows of that bottoming tail on the weekly chart.

As for earnings this week I’m going to be watching $BAC $GS $IBM $NFLX $TSLA $AA $SNAP $ISRG & $TWTR. A couple other names on the list could set up so I will scan the list each morning, but those are my favorites at the moment.

This is just the start of earnings season so be patient, and follow the plan.