The Stock Market Is At A Critical Line Of Accumulation It Needs To Hold

Welcome back everybody! Let go ahead and do a marathon run here. First, I told you yesterday we locked in these lines of accumulation. These are very important accumulation bars. This is where one or more institutions has come in off these key areas of support that I previously identified for you and not only stopped the market from going down but drove it back up here. So those are now very important lines in the sand that we don’t want to be crossing back below. That could go very poorly for this market if that is institutional buying steps away. So keep an eye on that. These lows that we set yesterday (accumulation bars) or also known as IRB (Inventory Retracement bars) or Institutional retracements bars, and if we break below those that is bad news. So we are going to be watching that very closely.

With that being said we go ahead and bring it into some other key markets. We are watching the bonds very closely here. We push down through this key level that I previously identified for you which was an area of accumulation and so now what we are looking for is do we come back up and hit the falling resistance area. The question is will we start to roll over? If we do the bonds could see much lower prices.

As far as gold, I have been warning you about gold and the congestion here that continues to be the case here. We are going right back down into the channel again. That is why I said these areas up here were so important to us and when we were up there to not be looking for long side trades yet because of the history of failure up in that area 1360 right now.

Looking at crude oil we are still failing to break above the $70 mark and watching that area very closely. We are roughly 180-183 ticks below that. So we are watching that 70 area closely and we are under it so we could see higher prices but until we break that 70 area we are not looking for longs there yet.

As we move down to some key tech sector we are also trying to hold the line here at Google and trying to hold key weekly support  and key daily support. As you can see it didn’t before and it is trying to do that again but we are taking a lot of hits to those key supports. As we start breaking down those areas and start breaking down those accumulation bars I showed you on the key stock indices bad things can happen fast.

As we take a look at Amazon it is the same thing. Hold the line with accumulation bars and hold the long term weekly support as well. You see just like Google is hitting some key support levels we are hitting multiple hits on Amazon as well. So we are looking to hold the line there and start to recover and get back up here and gets some structural positivity going back into the direction for long side trades.

Same thing with Apple. So Apple is holding on for dear life and I have been telling you about that 200 day moving average and the weekly support. We had a weekly bar a few months ago and that ended up leading to a nice rally of about $25 in Apple. But here we are coming back down to those areas Do the institutions feel the same way? Are they willing to defend those areas the same way this time around? That is going to be very key information. So we start breaking down below those accumulation bars that I showed you a few minutes ago. We start breaking down below that 200 day moving average and failing it and making it resistant so we can see much lower prices.

Same thing here with Netflix. Netflix is still trying to hold on for dear life. It is locked in again. An accumulation bar yesterday as you can see here off the key support and the weekly chart. Same thing holding a key support and a nice subtend. A lot of these have opportunities for further upside. They start breaking back above their daily speed lines and getting back into this clear air kind of area. So we want to see if the institution have a right or is a short term window and then this market is going to turn right around and pierce through the accumulation bars and if that does this market could be in for one wild ride to the downside. We don’t care because that is what makes a market and what makes it fun. This is why we love to trade and be active in our investments and trade management.

So with that being said those are a couple key things and it all starts with these key nightly stock indices. So watch those, we have those big accumulation bars we do not want to be breaking down below. If you are looking to be a bull you do not want to even get into that area. But once it breaks down that area you are really going to start panicking. From a bull side perspective if we can get back above these daily speed lines on these stock indices they we might be able to see some better moves to the upside here as we go forward. We are looking for that going into Friday to see if we can get through those.

So that is a couple key major updates there. You guy have a great night. I look forward seeing you in the live trading room tomorrow morning or the weekend videos. Take care everyone!

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