The Key Things That Rob Is Looking At For The Next Few Trading Sessions

Welcome back everyone! Let’s look at some intraday and end of day trading vehicles.

I have been watching the RUSSELL all morning. It has been in a great deal of pressure. That has capped the moves on the NASDAQ and DOW. They were very strong early on. They then pulled back as the RUSSELL accelerated to the downside. It has since gained some of that back. However, it is still under pressure.

It is going to be hard to get some of the instruments to perform really well without the RUSSELL cooperating. It usually is a leader versus a lagger. If we start to accelerate below the 1670 mark, it could post some danger to any longs that you might be looking at on the DOW and S&P.

If the RUSSELL has a serious change of heart, that could accelerate the moves on the Dow and S&P to the long side. The NASDAQ would have to get back above the 7400 level.

Let’s turn our attention to the bigger picture perspective. We have a mixed market in the big picture. We have the DOW and S&P performing very well. The RUSSELL is under pressure. That is a very big deal. The RUSSELL is coming into major areas of support from the past couple days. Those are the all-important inventory retracement bars. We are right there in those as we speak. If we start breaking down below those that could really accelerate a down draft in the market. That is where you will start hearing more about China. They are already voting to retaliate now. That is where it will all of a sudden settle in with people.

Some people did ask why I feel that the markets didn’t go lower because of China. We talked a lot about China and retaliation for weeks. The market had a chance to account for that. It’s nothing new, really.

Let’s take a look at a few individual instruments starting off with the Bonds. The Bonds made a lower low but a positive divergence. Now, we’re pulling back a little bit but we’re holding this area and locked into an accumulation bar. Unless we have a dramatic move in the next few hours. It makes an inverted head and shoulders situation. Will it break through this area and push to the upside? That could bode very well for Bonds. If we start breaking below this head, that could be bad.

Gold futures are holding on to dear life. Let’s look at it from the GDX perspective. As far as GDX is concerned. You’ll notice it shows up very well. You had this inventory retracement bar of the accumulation kind back there. We repeatedly got stalled in this area time and time again since May 2017. It’s a very important area for gold. It’s a do or die area. If this support area becomes resistance, you can see much lower prices in the gold miners ETF. We’ll be watching that very closely. If we can break above this week’s high, it can lead to a nice reversion to a short-term swing trade. We’ll be keeping an eye on that to be sure.

AMZN right now has a fish-hook buy pattern. If we can start to break above the high on Friday’s trading, that could bode well for retest to these previous highs. It’s important to note that we have an accumulation bar set to lock in this week and we had double dutch distritbution bars back to back the previous two weeks. Our opens and closes have been very close for the last few weeks. It’s more of a day traders market than a swing traders. For instance going into Monday, if this fish-hook buy signal takes off, we’ll be looking to go long above the high but I wouldn’t be holding it for a swing trade. I’d be looking to see how we respond to these previous highs. Two of these previous distribution bars back to back will be on my mind until we clear this one set from last week.

One other thing I want to keep an eye on with a little pressure and weight is Goldman Sachs. I’ve talked to you about this repeatedly. It’s usually a good barometer from my perspective. We had this long-term resistance that was going to be an issue we need to break through. On a weekly chart we have key resistance that was once support and made for nice bounces but has since become resistance. It’s still resistance right now. Today’s highs are right there on those areas of resistance around 238.84. That ties in very well with the $238.58 area of resistance. Bottom line is Goldman Sachs has resistance coming down on top so I’m interested to see if it fails this resistance area and roll back over, which could put the rest of the market under pressure. Or do we break above this and make it support, which could really help set us up to further heights in the overall market so I’ll be watching that.

Have a great night and a great weekend. I’ll look forward to seeing you in the Live Trading Room on Monday or in the nightly videos.

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