Not much has changed in terms of the overall price structure or action in the broad market.
There is plenty of weakness out there for all to see.
In addition to the usual suspects like energy and materials, Apple (AAPL) had a major technical breakdown this week: it sliced right through its rising 200 day moving average and lost roughly 6 percent in the last two trading sessions.
Given the above a reasonable expectation would be for the major indices to follow suit and also fall through their respective key support levels. Strangely, nothing could be further from the truth. The S&P 500 and Nasdaq  Composite remain in tight consolidation ranges supported today by strength in momentum stocks, including Netflix (NFLX).
This has me thinking that this market may be stronger than it seems and the bears’ inability to officially “break it” could mean they are skating on thin ice and the odds of a substantial push higher are increasing. That said, the crosscurrents are alive and well – and this requires active investors to dig deep and tune out the noise to find solid trading setups and investing opportunities.
Below are five trading setups that I will be watching tomorrow.
Ambarella, Inc. (AMBA) – I talked about this stock as a possible short setup last week and it has indeed pulled back some 10 points since. Today it bounced off the 110 level and closed above the 20 day moving average. This bounce could set AMBA up for a short-term trend reversal and a push toward 120.
Amazon.com Inc. (AMZN) – potential SHORT trading setup  The stock remains technically neutral. However, AMZN’s inability to bounce off 525-530 support with any conviction could lead to another leg lower into the gap toward 500 and the 20 day moving average.
Kite Pharma Inc. (KITE) – One of the more lovely technical trading setups. Long and rounded consolidation base has given way to a narrow sideways consolidation above 70 and the 20 day moving average. KITE seems to be getting ready for a breakout through 75.
PepsiCo Inc. (PEP) – Pepsico is a stodgy and boring staples stock. But it looks like it’s getting ready for a breakout from a five-six month consolidation base and a move through 100.
Valient Pharmaceuticals Intl. Inc. (VRX) – Another biotech stock defying talk of bubble and flagging for a push higher toward 280-300.
Thanks for reading and have a great rest of your week.
Twitter: Â @NoanetTrader
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
