Bigger Picture

Out of the frying pan… into the fire?

This morning”s open is being greeted by S&P futures opening sharply higher. While this helps to prove the expectation for last week”s dips to be absorbed and recovered, it also introduces a new challenge. That is the level indicated by the open, which is essentially where all of last week”s gaps up died.

I”m still giving the rally every benefit of the doubt, for producing new highs. Those new highs aren”t very much higher. Make it through the open without reversing down, and the balance of the morning would be likely to extend higher. Even then, we”ll want to keep an eye out for that extension attracting new sellers.

I”m watching the following stocks and levels:
TAUG — Testing critical .036 support… yesterday”s close under it must be rejected relatively quickly. That said, a little extra dip to .0335 would still be recoverable.
ENRT — Held its .14 pullback limit, so a reaction up should be obvious today… if there is going to be a reaction up.
VAPE — Yesterday”s close was testing its 2.37 resistance whose recovery would confirm the next upleg is underway.
Stalking for pullbacks: ATTBF, CARA, GBLX, MJMD, SPRWF.

Enjoy!

Here”s the link to this morning”s Livedesk, and a summary of stocks we discussed:
http://new.livestream.com/accounts/7617211/events/2865745

ATTBF — Must close back above .61 and .66 to prevent the Head & Shoulders pattern from extending down under .55 and .51.
CANN — Still retracing a big downbar, which is only natural, and which is natural resistance.
CARA — Pullback should recover to more fresh highs by Tuesday morning (preferably by Monday”s close).
EAPH — Failing to trigger its Ascending Triangle at Monday”s close despite huge volume would be bearish.
ENRT — Probing under .14 satisfies the pullback objective, but .1375 must hold.
ERBB — Closing back above .0223-.0225 would target .03 and higher.
FITX — The reaction down from .06 seems too obligatory not to be retested.
GBLX — Reaction down from testing 1.31-1.32 resistance must hold 1.08 or 1.20 support.
GWPH — Still improving since meeting the 80.20 pullback target, with potential to probe above 90.
INSY — Friday”s reversal should be rewarded by a $2 rally.
MJMD — Looking for a pullback to .71 before next rally leg begins.
NVLX — Fresh highs continuing to confirm the breakout remains intact.
SPRWF — Bounce on big volume back up to 8 is only retesting the origin of Friday”s bigger volume drop, which is not a reversal.
TAUG — Testing .036 and closing above .036 would keep alive the temporary pullback scenario. Closing back above .0425 would signal momentum reversing up.
TRTC — Testing big support at .43. Closing under .403 would target new lows.
VAPE — Morning”s surge pulled back to test 2.31 support. Holding it and especially closing above 2.37 would be bullish.
VPOR — Already not helpful to be retesting .061 support.

While waiting for this morning”s Livedesk to begin at 10:45 ET, following are several individual stock updates that I”ve posted to the Activity Feed:

GBLX — “Rocket Launch” candidate… Issued a summary this morning of recently achieved milestones, which suggest last week”s bounce off of support wasn”t just noise. But even if extending higher this morning, there will be mid-morning and afternoon checkpoints that must also be improving further to avoid at least a retest of last week”s lows. Meanwhile, upticking through the open could extend considerably intraday.

ATTBF — The potential Head & Shoulders pattern that I identified through Friday can be rejected by closing today above .71. That is meanwhile resistance, so beware a test of .71 that reverses back into negative territory.

EAPH — Another “Rocket Launch” candidate? Huge opening volume accompanying an attack on last week”s highs. Extending any higher would essentially target .022 or .025.

VAPE — Strong volume accompanying the open”s surge that is already attacking 2.31 resistance… Downtrending resistance originating from June 19 is intersecting right here and now at 1.31-1.32. We”ll look at it during Livedesk.

SPRWF — Testing 8 resistance. Big volume during the first hour, but still lighter than Friday”s first hour, which was a plunge from this level. The actual reversal signal is triggered back above .091-.093.

Good morning!

Overnight action in S&P and Dow index futures hasn”t traded positive at all, not unless considering a brief bounce that remained entrenched under Friday”s close. NDX futures are negative, too, but not as deeply. Despite being likely to gap down, fresh highs today remain possible — if not also likely, so long as a rally is obvious at or very near the open. The likeliest alternative would trend down aggressively and potentially retrace all of Friday”s recovery.

Action among MJ stocks greeted the weekend mixed. A quick check of press releases this morning — or, the lack thereof — depicts an eery silence among companies. Not all. I”ll comment on GBLX in this post”s thread in the Activity Feed. Comments on ATTBF and others will be added there, too.

Look for the Livedesk announcement this morning to review the opens among MJ stocks, and to get instant analysis of any chart you choose.

Enjoy!

Caveat emptor, literally… Are you watching the percentage of 4-week uptrends, downtrends, and flats? Uptrends have shrunk to their lowest since I started The Universe on June 2. And they”re half of last week”s total.
weekly uptrends: 18…15…11…14…25…19…10
Meanwhile, downtrends are at their highest, but not much higher than prior high readings.
weekly downtrends: 47…44…46…46…31…42…54

Among the more interesting charts this week is ATTBF. It ended the week surging to critical .66 resistance, with the spotlight about to be shined on it over the weekend. The surge also formed the right shoulder of a potential Head & Shoulders pattern.

GBLX twice tested and held what had been support at 1.00, then surged through the week”s last two sessions.

A borderline MJ stock, INSY, gave sell signals several weeks ago, and then rolled over. Friday”s possible Key Reversal pattern is suggesting that it”s about to roll back up.

And MJMD, which was mentioned here last week, finally gave signs into the week”s end of correcting its first upleg.

Enjoy!