Where We Go From Here After Today’s Rally

Okay, welcome back everybody well let’s go in first of all start off with this key chart. Because this is a chart that I’ve been sharing with you even late last year this helped me identify the big drop in the market we had the rising the higher high in price but we had the lower high in the divergence that led to the big sell-off we had then of course going into the new year I said that’s it backing off shorts not looking for shorts anymore and that we went ahead and we pushed up here. Now, the thing is, that we made a higher high again but we went ahead and made a lower high over here and so we had a healthy pullback all right so where are we at with all this well the 65 the 26,500 to 27,000 area like I said that’s just a wall of concrete from my perspective at this point still and so as we went ahead so nothing’s really changed since my last report from that perspective we’ll talk about the dailies in a moment though a little bit different there. So, in the bigger picture though we have not gotten through this 27,000 pullback to it sort of take back off instead what happens we push through it pull back and instead of trying to actually take off it actually made another distribution bar right here that led to the move down hence all the bearishness I gave you leading up to that and through that entire process go back watch the videos you’ll see what I’m talking about.

So, armed with all that information where we at now let’s take a look at the stock market and so as we look at the US indices there’s finally a glimmer of hope for the longs and what we have to have happened now it’s very important so pay attention here with the S&P; we need to get back up above the top end of this channel over here really the 29 – 47 area be even more ideal get above that, pull back, make that support sort of take back off on the Russell here really we got to get above this 1,500 level just to even get bullish because the Russell has been so painfully underperforming the other markets here. It dried the markets down it was an early morning indicator there it’s gotten down stayed down even now today despite all the all the excitement in the Dow and the S&P; that are very close to key levels of breaking out above that could be very positive for the market the Russell is still stuck down here and that’s important. That index of 2,000 stocks we can’t ignore that nice by any means so with that being said the Nasdaq you’re watching the 77,060 area the Dow watching the 26,500 level I’d like to get above that so we go for a test for 27,000 but watch out for the Russell here it’s right now at this 1,500 level and we just need to do better with that it but I said the Russell could then if it catches up to its other brothers and sisters here it can go ahead and you know really you know outperform so the other indices is based on where they’re at so we’re gonna be watching that very closely in the meantime though when we talk about individual stocks I’ll bring it back to, you know, there’s been a handful of them and I’ve continued to show you throughout the year and talked about in special you know, swing trading events and everything else that I’ve done for you guys recently. In Roku was one of those that we talked to Roku is one that comes up on my lists often and you can see why basically this one has the weekly chart has been you know bullish for months here. Took off to the upside we were above the zero line over here as it relates to the daily chart same thing it would get up and pull back to rise in support take back off fire off fresh buy signals go all the way up to target to pull back and now here it is even running through that target too. So, you know the stocks like Roku right now are way outperforming the Netflixs of the world and in fact let’s just pull up Netflix for a moment and you take a look at it’s a bloodbath comparatively speaking and you know Netflix it’s got a lot of competition got a lot of issues going on there I’m you know I’m not as excited about Netflix right at this point with us being down here particularly being down below the zero line and then the weekly chart on the zero as well that’s you know helped precipitate an additional 30 dollars have dropped since breaking down below that level so that’s not the place where we want to be and if you look since we’ve been down below the right over here so this at this point down here around the 330 mark is when we crossed over the zero line here and again that led down to about tonight it’s about $40 from the daily chart perspective.

So, no matter how you slice it you know this is one that I’m not nearly as excited about if you’re looking for a long side trade you’ve got to have a lot of bravery associated with it and hope that this accumulation bar is going to hold here on the daily and the weekly chart so but if it starts breaking down below you know, it could be “look out below” so right now with that being said as I’ve said before, if Roku is one of many that go ahead and impress me far greater and that’s continue to be the case for the last several months and it’s continued to go up after small pullback so at this time it’s very overcooked but you know pullback by opportunities and resumption Got cha of in Reverse inventory retracement from bar trades although the classic inventory of tradesmen bar trades all those have been phenomenal opportunities if you know anything about my work you see an opportunity after opportunity after opportunity with those markets here ok? So, we’ll continue to give you more ideas like that as we go forward and do like our big weekend analysis video here coming up here so we’ll see you guys in the upcoming videos have a wonderful night take care everyone let’s keep enjoying the market. Bye-bye!

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