Scalper1 News
The NASDAQ Composite and S&P 500 bounced off their respective 50-day moving averages on Friday on appreciably lower volume. The number of distribution days remains high. That said, the up-down oscillation in the price of the majors seems to be narrowing which potentially bodes well for an upside breakout to resolve this sideways market that has persisted since December 2014. On the other hand, leaders have had a tough time of things which may imply further down side in the short run. Of course, major averages can tip toe higher as they have done in the past even while leaders struggle to find their footing. Investors should maintain awareness of leading stocks that may be pulling into logical areas of support while keeping an eye out for areas that may benefit from any rotational type of correction in the general market. We have seen a number of standard-issue base breakouts fail, particularly in headline names like Apple (AAPL), Twitter (TWTR), and Facebook (FB), and this speaks to the value of utilizing alternative buy points as stocks come up the right sides of potential new bases. This is the primary long set-up that appears to work in this market, while orthodox buying of obvious base breakouts is far less effective. Thus as the market pulls back investors should be on the lookout for potential emerging leaders showing these types of unorthodox buy points such as roundabout pocket pivots. Scalper1 News
Scalper1 News