Bigger Picture

The open”s gap up didn”t extend higher, but neither was it rejected. Not yet. Let”s look at stocks on Livedesk at 10:45 ET.
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Is that a gap up in the market, or is it just happy to see us? Having survived the weekend, perhaps it”s a little of both… The world didn”t fall (further) apart, and Europe”s exchanges didn”t react too poorly last night to the lack of US recovery Friday afternoon. So, S&P and Dow futures have been ranging back up to Friday afternoon”s high. NDX and Russell futures are doing much better.

All of which would be great for this morning”s direction — if not also for the entire session — so long as the gain were to extend higher through the open. Look out below of not. No economic reports are scheduled that might be a catalyst one way or the other. Check this this thread in the Activity Feed where I”ll add post-open observations, and I encourage you to add yours there, too. We”ll do Livedesk at 10:45 ET.

Setups || This week”s Universe || Last week”s Universe

Brutal. The percentages of 4-week uptrends has never been lower, and the downtrends never higher. When their relationships were reversed, that might not have been a bad sell signal. Is it a buy signal now? At the very best, it is suggesting the declines may be running through sellers. Unfortunately, illiquidity among these stocks needs buyers to force a rally, as simply running out sellers isn”t enough to reverse momentum back up. By the way, the broader market isn”t helping matters. But there are 2-3 interesting patterns, at least to monitor…

SETUPS
AGTK — BOTTOM FISHING
This a “Falling Knife” candidate one week ago, and it came out of the gate spiking up. Big, big volume throughout the week kept price aloft, greeting the weekend at its highs.

ENRT — BOTTOM FISHING
Upgraded from “Falling Knife” after potentially double-bottoming last week. But the consolidation remains under prior lows, needing to recover .14 before actually signaling that momentum is reversing up.

FITX — BOTTOM FISHING
Still no evidence contradicting the ongoing Descending Triangle formation. But a questionable drop from .06 has recovered entirely after holding  a test of prior lows, creating potential for testing .085.

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In this afternoon”s special Livedesk I described how the price action entering this weekend is creating an inflection point, likely either to surge out of the weekend, or else to suffer greatly. It”s not as bearish as my April 4 call on the MJ sector, but only because that pattern was breaking an uptrend, whereas this pattern is breaking another support. Thinly traded stocks are at the greatest risk in that latter instance.

We discussed TURV, INSY, MJMD, ATTBF, AGTK, ENRT, GDX, SIL and PSAU, then addressed stock chart analysis requests. The recording”s link is below… Check this thread in the Activity Feed for my pre-close comments about the market”s prognosis going into the weekend.

Despite rallying into and out of this morning”s open, the balance of the morning reversed back down to retest the overnight lows. That can be very bullish, except for Fridays. At new trend lows. Like today.

Join me in Livedesk this afternoon at 1:30 ET to review the bigger picture risk ahead of the weekend, action among the MJ sector, and any chart analysis you request.

http://marketfy.com/product/marijuana-stock-technical-trade-alerts/livedesk/