I think yesterdays intraday reversal may have some important consequences for the immediate future in the markets. While, overall we still remain in a correction off the recent highs, yesterdays reversal may have marked the near term low. The markets attempted a bounce earlier in the week, but as could be expected ran into trouble quite quickly. This is normal, and also why picking a bottom is so difficult. Counter trend bounces are almost always choppy in nature. However, so far the markets weathered the retest of last weeks lows and could be ready to attempt a more meaningful rally attempt. I would caution that there is still much overhead resistance, but another important thing that occurred yesterday is that we now have a line in the sand to watch. This makes trading in a difficult tape much easier, as the stop out point is clear. We make new lows and we just get out and wait again.
With that in mind, here are a few charts I am watching. Notice the similarities, and more importantly, the types of charts I am not watching.
What do these things have in common?
$ISRG – Intuitive Surgical, Inc. (Public, NASDAQ:ISRG)
$VHC – VirnetX Holding Corporation (Public, AMEX:VHC)
$IRM - Iron Mountain Incorporated (Public, NYSE:IRM)
$BIIB – Biogen Idec Inc. (Public, NASDAQ:BIIB)
Other stocks worth watching that don’t quite fit that criteria but are worth monitoring include $EW $RVBD $BKE
Good Trading
Joey