Tuesday, August 2, 2016

Range Broken, Now What

The market finally showed a little volatility today, the SP500 broke its 2-week range to the downside. I believe that breadth gave us a heads up that the recent range was going to resolve itself to the downside; 1-month and 3-month lows were expanding, the advance-decline was also showing less participation, you can see the charts here--> Jul. 28 at 08:24 PM and here Jul. 28 at 08:16 PM.

Here is a possible roadmap for the SP500, H/T AlphaTrends

Underneath the surface, we still have some decent swing ideas that if the market cooperates they should do well.  $MTW $ NTES $HLX $WBMD $AYI $YY $SGYP $MSM $CVGW are some of the stocks of interest on the long side if they are able to break through today's high.

My opinion and outlook are subject to change as new information comes in.
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463. 
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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