Saturday Review

Friday’s plunge was retraced almost entirely. That was after it neutralized several attractions below. Saturday Review examines the potential to reward Friday’s buyers with a retest of Thursday’s high and higher. Specific upside levels are included, and downside limits whose breaks would still indicate Friday’s incomplete recovery wasn’t being rewarded. Meanwhile, the bigger picture comparison of Dow, NDX and S&Ps suggests that speculation was already waning. So, regardless of that immediate resolution, another downleg is appearing on the horizon.

 CLICK HERE TO WATCH

The following stock requests were reviewed in this order:
BCS, SQ, CRM, UA, BAC, ORCL, AMLP, RAD, KSS, JCP, JWN, SHLD, ARNA

transcript:

alright let’s get started on this morning Saturday review it is Saturday it has been a wild week wild couple weeks almost so not a rally in a vacuum actually there was a range the range by the way held on by the skin of its teeth at a very relevant level that have been chipped away quite a bit 2563 75 being the relevant support and just to prove out how relevant the support was at 6375 the only way that the market was going to get out of there without first forcing the downside the only way to get out of there to the upside was to do so aggressively in other words the only way to avoid falling into the pit was to jump and a jump very high and very quickly not really suddenly but that’s where the timing was sudden Steep and substantial and so that has created room to help absorb selling pressure that rooms is sorely needed at this point because we had to hire targets to higher potential targets coming out of the coming out of that pattern or if fresh eyes were there’s actually room for noise above the 25 9050 to test 2675 and you can see the influence there a week ago getting out of of 2600.75 with next Target 26 3175 and 26 5725 3125 or 3175 and 57 25 2590 50s Target handheld over the course of two or more weeks before breaking out so pretty substantial targets being mad and being that pretty aggressively and a very short time frame so the market was vulnerable the point is that the market was vulnerable vulnerable the rally was vulnerable to reversing down or two at least pulling back its sponsorship having been satisfied not just meeting its objective meeting two objectives meeting two objectives mean the second objective without having any time or room to refuel without a pullback here’s the 2590 50 objective being that and here’s refueling hesitation reaction down pull back one false step here and it falls into the abyss that’s how much selling pressured been expended enough to the precipice if that dangle its legs over the precipice without falling in no such thing at 2631 75 clearly influential but not anything substantial before extending higher sothere’s just no no sponsorsthis sponsorship no reinforcements and that made the market vulnerable I listen to that vulnerability because it’s news related the actual manifestation of that vulnerability reacting down it was me one moment hereso this is the session that fulfill the 26 5725 Target during the noon hour so over by the tire size but 1 minute and 3 minute or so I simultaneously overbought at the High which normally would require retest did not and do not no requirement to retest that high which actually is 5850 but the reaction down from there was just organic buying pressure fulfilled there was a little bit of a news nothing really pressing the price did not have any buyers to support it into the clothes so the next morning and by the way 5725 2657 25 Target that could have led to another higher Target just has 2531 75 Target led to the next higher between 6:50 7:25 being put into play had the reaction down from 5725 not been so substantial is to break under 51 2651 maintained as support even if it were substantially at your day just recovering it through the clothes would have kept alive the upside momentum 2651 was not recovered in fact set up into the clothes that we knew would run into resistance 51 so pretty much had an early indication that the upside momentum was done that could have resumed Yesterday by gapping up through 2651 and extending higher and it’s not without trying that’s why I 651 was not recovered it wasn’t recovered in time to trigger the bias up at 10:15 although it was attacked within several minutes could have been recovered through 10:30 to invalidate the fact that it had not been recovered that it wasn’t recovered through 10:15 the buyers were shut down or at least limited and have there been any probing about 51 which actually there was potential then 5454 5054 25 would have been the likely objective nobody has trending doomed to failure but that would have been the likely objective as it happens news came out we’ll talk about that in just a moment but again just to refresh or reiterate that the reaction down was not just a product of the news that triggered it but also that the next higher objectives had both been satisfied in so short of a time frame without the 3175 objective haven’t had a chance as the 9050 injective head had to refuel buyers were literally totally spent so did the reaction reaction exacerbated by Glee just a normal reaction to the actual knew that it was misreported as being a as being a crime committed a crime committed during campaign. For Trump as opposed to lying about something that is not a crime that was done after the election had already been had already been completedso you can the market spoke to thepirate racing the unchanged not back to the eye drops origin which knee-jerk reactions to news often Dura Trace back to and then through the origin of the knee-jerk reaction something we’re still anticipating and because of that extra refueling because what even if strong hands were on their way to pushing price down maybe their objective is even lower than 2605 because there was news that triggered a knee-jerk reaction we candid sponsorship is the if you look at this this is we can’t its sponsorship this is not strong hands no there may have been some strong-headed dumping based on the rhodius reports or headline quite possible but we can’t consider that the origin of the news of the knee-jerk reaction to the news pretty much always retraced and then some because those weekends that crowded out strong hands it’s not enough to just retrace the entirety of that reaction this is now refueling this is now refueling so we’re looking for a retest actually at 5725 or looking for some kind of a probe 5725 that’s the likely or scenario expanding this to include overnight action and you can see that overnight this pattern has had or this Market has had some instances of overnight dips that have made a difference that have been last relative Lowe’s since this last overnight death November 15 pre open the market hasn’t traded that low here’s an overnight dip prior to that I’m sorry that’s not right lower than that other than to momentarily hold the test no breaking lower no reversal so it’s possible that we get a retest of in this market that is with this sentiment it’s possible that we get a retest 5725 with a fresh High that’s done overnight and that that satisfies the upside so will be on guard for that if any morning we come in and there’s been a fresh hi and that fresh High overnight extreme opportunity just isn’t complex if it’s a single probe of the prior sessions hi that’ll be a reason to suspect for reversing down the actual signal just as an example if there were an overnight probe of a prioritized about 5725 and it wasn’t complexed it was a single probe or multiple problems but all retracing back under 5725 and the overnight low or being broken into the open that would be our cell signal or optimal cell signal anything else is going to require some more time establishing a that’ll need to be broken what’s another story that might get that done currently developing is tax reform when we come in Sunday night if you’re coming in Sunday night may be greeted by a relief rally after voting in tax reform after finally clearing that hurdle then whatthe last two days prior to Fridaycall one and a half days Wednesday and Thursday morning were seemingly all about tax reform different Senators coming on board different deals being worked out announcements being made that’s pretty much discounted in the market and discounted has different meanings what is a financial term meaning that the valuation of it is already reflected in the price I think from a technical analysis perspective what we really want to focus on in the meaning of discounting is that a major portion of Market participants have already had the opportunity to express that sentiment they were going to say it’s a major portion because they were pretty productive they broke out of prioritize they fulfilled two objectives in a short. Of time there’s substantially way from the 20 2601 or 25 9050 prioritize prioritize jective substantial portion of Market participants have already expressed their sentiment favorable sentiment discounting the likelihood or their anticipation of the deal being voted when it’s actually voted in then how much of the market is left to express that sentiment and after it’s Carol like this how many are going to be waiting to take some profits on that so there’s no other favorable news anticipated to follow on the heels of that then fresh High whether it’s overnight or entered a fresh High retesting 5725 even though it’s not required to be retested he is going to be an opportunity for pull back an overnight high again it doesn’t have any complexity to it and doesn’t require a retest and is reversed by the open to be chipping away or probing under its overnight lows earlier overnight lows that would suggest top is already formed otherwise after this much refueling this much refueling which are described in just a moment after this much refueling there is potential to stake out a little bit higher next hour of jective isn’t if 5725 is recovered through a closed the next time jective isn’t that much further away before it begins to be satisfied just 10 more points very similar to 2590 50 his room for noise was 2600.75 next room for noise almost 10 points higher than 5725 at 67 get out of 73 and that’s where the next objective is put into play and it’s substantial into the 2700 handle little bit of interim potential at 2700 basically 2698 what if the market immediately begins down trending the beginning of the week what would cause that to happen maybe not getting the vote maybe another delay or having to walk away from it there’s certainly a pattern of that with the years other big legislative attempts as I said I was going to describe or examine more closely the refueling that took place Fridaythat’s necessary to know about to understand how much deeper and why negative reaction could delve much deeper member 5725upside potential already satisfied at Target so it doesn’t have to be requested it’s likely to be retested if this leg has in fact we’re fueled buyers which will know if and when the origin is retraced if bigger news doesn’t overwhelm at a minimum the knee-jerk reaction down has recovered to unchanged it it actually looks like a recovered in the positive territory versus Thursday’s Futures clothes but actually Thursday is cash that stand close was basically 2646 75 so a little bit more potential there but essentially back to unchanged not back to the origin of the knee-jerk reaction until that’s actually probed it hasn’t in fact for fueled buyers but what was being done is talked about during the market to her before the open the normal just organic pull back would have found support in this range in the gaps Rings that’s not an air pocket air pockets are not formed by the lack of previous training air pockets are formed by overly trading an area so the more times you see price cross within an area across back and forth up and down the more it has chipped away at support and resistance the more that is an air pocket here is almost Uncharted Territory the natural support being basically a 61.8% retracement it’s a little more detailed than that but a 61.8% retracement into that Gap area which in fact was the low overnight prior to that news so that would have sufficed but that was chopped away not chipped chopped away as we discussed Wednesday afternoons as the upper end of Wednesday afternoons range which itself was a struggle to avoid dipping any deeper to fulfill its outstanding objective of 26 1750 that would be tested again after having Pro after having resolved back above its session High if Wednesday afternoons range were Revisited again than any unfinished business that it had left outstanding would be immediately in play and it was attractive immediately actually to within 2 or 3 to 6 and no reason for that test to be made so no reason for that to hold other unfinished business below 2609 75 r s i s m l taneously over sold at Tuesday afternoon’s pullback low that’s not support that’s just an objective the actual objective was 2605 if this Wednesday afternoon rain driven touch 2605 would be the objective 2605 was touched at the low could have been probed buy a few points it doesn’t it’s neat when it’s precise when the market behaves precisely but that wasn’t necessary to send the same message that message being all those down side attractions are fulfilled so 26 1750 don’t have been left outstanding over at 2609 75 and even then what would be the room for noise under those attractions down to 2605 all touched all held all recovered before the clothes through the clothes sellers gained no traction for that effort which expended a lot of selling pressure so how is that potentially potentially obviously because all that selling pressure is gone satisfied and almost in the blink of an eyehow is that potentially barish because there is now norevisit these levels not to revisit lower prioritize from Wednesday afternoon the 26th 1750 unfinished business that from that session that’s now neutralized or oversold are a size at 2609 75 visiting those levels would suggest or risk that sellers are we gaining traction and buyers aren’t exploiting all that selling pressure having been satisfied now there is still potential just as noise for a pull back for a replacement Friday’s recovery we’re not going to go through the specifics of that other than to point out that if there is a dip if there is a reaction down it’ll just be coincidence that it happens to be touching Wednesday’s 2626 or 2627 lower prior highs you’ll just be coincidence so long as it’s recovered back above a relevant level through a relevant window so if overnight there’s a dip touching 2627 and it’s recovered back above that sessions High 2634 5325 that’ll be bullish to have contained or isolated sellers as an example but start breaking lower start testing lower Pryor High start testing features of previous sessions that don’t require retest anymore at without rejecting those tests before they open that’s where the trouble starts as far as resuming the rally as far as even retesting the high should be interesting and should be opportunistic there should be opportunities to trade off the levels but it’s not going to be predictive until a timing window and irrelevant timing window passes into relevance and we get to see how it disposed of a test of a relevant level we won’t have any new information predictive of the next direction or the risks risks in either direction but it is certainly possible that this is the beginning of the end retest of Thursday’s High which isn’t required is disposed of isolated to some irrelevant window and reversed under some back under some relevant support in time to be predictive of momentum reversing down that’s really the only into higher highs it’s tough to see this pattern immediately resolving down durably having satisfied so much pressure already it would have to be in reaction to news which action news wouldn’t be durable it would have to be done overnight which would leave outstanding the Gap back to Friday’s close wanting to be filled so unless something so powerful is Friday’s low through some relevant window or started chipping away at graduate we’re still going to look for Thursday so could be a very compelling by and that had formed until midweek last week not the current week before breaking iron to Thursday’s High and was itother than cocaine in the recovery basically coming up strong about the 6118 or Trey Smith of the drop still shallow still leaving some room for noise above how about and q’s the speculative attraction for big money it has been doing very strongly outperforming es and the Dell really making up for lost time in some respects but a performing none the less but what happened last week last couple of weeks here’s that same basing through midweek last week that broke higher Wednesday and Thursday that’s all right there we go that it broken higher into last week and never recovered into Thursday’s rally was a retrenchment 6118 retracement correction done this is incredibly important two virgins from other indexes we’re going to see the down a moment but just compared to the control group which is the ESC S&P 500 these hundred more speculative relatively more speculative stocks this isn’t the Russell this is still large-cap widely followed established companies to some degree to a great degree considering that they still don’t have the greatest predictability and income or Revenue I’m sorry revenue and net income so there had been a lot of interest is one thing that it kept alive the rally in our minds was that the speculative fervor hadn’t died out or was actually reborn after that last consolidation that last topping a few weeks ago but now speculators or the speculative side of the institutional Market is pulling in there raining in their horns again and Qs ES so is that money rotating anywhere specifically like who’s outperforming this is the Dow 30 stocks polar opposite while still being stocks while still being highly liquid otherwise polar opposite to the speculative MDX and cues in the minds of Institutions fiduciaries Etc they have to be in stocks Maybe by prospectus or some other directive or they still want to be committed to the market but not in the riskiest area that is still available to them but why do we followed more predictable this 61.8% Friday actually got up to its room for noise he has left some on the table the Dow outperform the Dow is attracting more money than the broader base control group the S&P 500 Friday actually had retested Thursday’s High where he has did not that created a little bit extra room to absorb selling pressure but that selling pressure only came into lower prioritize Wednesday’s lower prioritize compared to the ES which Pro gundyr Wednesday’s lower prioritize Wednesday afternoons lower prioritize on the way basically to Monday morning signif the performingmoney Morningside it would have lost twice as much intraday so relative a performance so now they’re big indication that sentiment where it matters in strong hands is making a turn shifting and it’s doing so while markets are standing at the as I was saying earlier or have been at the precipice dangling their legs over so field we tested the high or backing and filling shut that is distribution at the highs over the next several days that could have a very serious effect of the downside a resolution to the downside okay any questions go ahead and post them let’s go ahead and start looking at stocks of Interest couple of course that I want to update as well but let’s go and starts you don’t need to limit your requested to I’m going to do the first two that I see from anyone and then Circle back around if there’s others Barclays it’s almost had an opportunity here to reverse the trend lower lows lower eyes it’s not just a matter of them producing a higher high which this was one year ago but then to reduce a high or low which would have been and could still be I shouldn’t say it’s off the table but the higher low the last relative low to the last relative High from March of last year March was at April that 8:16 815 so so far that’s a higher low and we’ll know what the degree of certainty a great degree of certainty that the trend is reversed and recovered through a closed that’s 12 closing a major Trend shift in Barclays otherwise or until then we don’t know whether this is just a consolidation waiting to resume the decline calculable e 9 needs to hold 9 913 calculator turn predictive reflective but so that’s where this stock is the last touch yeah touched indicating a couple of consecutive for would signal and confirm the minimum objective would be to retraced the entirety of that trend line the minimum exposure the origin of what could then become a trend reversal on a close above 12 under 9:39okay Squarewhere is gone into into hyperdrive it really need me to tell you that when you can look at the truck but just to put some numbers to it 3330 the to 61.8% projection of basically the low needed to hold a very narrow pullback limit which is dead 168 and that has allowed this trend to extend and it doesn’t mean just prob’ly fresh High that means taking multiple of this trend and use that to identify the next time jective so there’s resistance all the way I’ve been with this one but this is a resistance influential as well it looks like having attracted to Gap up but ultimately if this is going to extend then it’s objective is essentially 7385 7390 so there’s potential for a double in this pattern so long as 3168 3109 hoses support optimal 8:30 this whole range of great importance begins at 35 6061 under 4290 haven’t confirmed under 3926 before being able to at least have to actually enter into this range and once this range is entered into back above 3926 would signal that the rally had resumed and yes confirmed 4291 and it’s under a double from this range under 31 this is the pullback objective it’s also a pullback limit I can’t speak to what the character of the reaction would look like if we’re just to continue on interrupted and break under 31 actually that would be bullish more bullish and bearish because it’s what essentially be the first reaction down for the previous friends on the way to break and go to 3131 or 9 this word to back and fill and refuel then I’d be concerned with a break on 231 which I believe is in Barons today and they’re pretty favorable toward it that is this week it just came out todaykind of sloppy up herevery weird pull back a year ago but see if we can still make sense of that if there was some kind of a paradigm shift in the stock beneath the surface year ago who takes on a different character there’s some remnants of the previous pattern but quite so I can give you a yes that’s the highway maybe I’ll be there is I can’t call for noise really but just that whatever is sponsoring this excess this excess leg above 9758 may have been satisfied at 109 18 and is now struggling to hold 104 needs to Old 104 support to maintain the upside potential for extending even higher so long as it holds this pull-back and recovers a 18 then that was not a substantial top so the next bicycle would basically be closing about 109 18 without it closing again under 104 are the low of this range that’s testing 104 if this turns into a more substantial correction it has room down to 9365 and probably would test 93-65 before being able to recoveras the drop persists and there’s a long way to go to even begin trying to reverse the trenddid attempt to try to reverse the test if it’s red with a bounce to 1465 get out of 1560 and the attempt might extend even higher back into the 1865 area still not a good base in here at this word of develop immediately the likelihood of becoming something more substantial to the outside very low Bank of America interesting big volume increase chest size but it’s a ride into writing to relevant resistance what was that close so 2810 was contained reaction down from 1.8% projection of this pattern 2841 recovered through the clothes that’s what matters is the closing price and it recovered kind of a head and shoulders pattern 61.8% projection and then some other percent actually reached at the low so there’s a little bit of a trade hear back above 2825 sooner rather than later but that would that would Target 2947 and potentially 3084 2802 through the clothes that should be followed through if it were to close higher close above fresh eyes that is above this week size then that puts into play at basically extends the rally remember extending doesn’t mean just printing slightly higher highs it means actually leveraging or duplicating almost an entire leg and in closing at 8:02 2802 down to 2750 that would seal a top I can’t make that and then closing under 2750very shallow hovers optimistic we short of actual support and it affects Ali optimistic for a while because it doesn’t it’s not exploited then it’s Target is exceeded more optimism excessive optimism and by exceeding its Target it runs out of sponsorship and as soon as it gets it together just within a couple three sessions it runs out of sponsorship again that doesn’t mean to tread does reverse down having dipped back down as far as it has closing back about 4940 should put into play a retest of that high of August Hai which cell or September side which itself left outstanding a gap back to 5279 so I’m reluctant to get barishan this until at least retesting or fill in that Gap that can 5280 there’s a trigger that is trying to hold support in the support for the trigger is 4875 really no Rhyme or Reason to how much time it’s allowed to take it shouldn’t take long it doesn’t usually take long but it can take a while it typically doesn’t go on indefinitely but so long as 4875 is holding his support there still potential to or still in a traction we’re still in the orbit of 5280 it’s not a great risk reward to just get long here because we won’t know that’s wrong until closing at 2:46 alright because of the consequences versus other equities they can behave differently it’s certainly interesting here that volume is clearly expanding it’s done that before into and out of a turn comes in at 61.8% so basically presumably confirming that 61.8% influential volume to still be just noise to still be just a corrective balance that would satisfy a lot of that volume increase everything but it is nice for the it is nice to Gage this against a previous low it’s hasn’t been a year of decline or at least so I can’t really say that this is greatI definitely want to see somethinghaving had a year of rallying recently this isn’t actually this didn’t begin the year or spend half the year declining precipitously and chop Ali and being bad about by wide-ranging opinion that’s also helpful when looking for a January fat candidate that you can get extremes that a start that helps us. Get to extremes that kind of price action and then finally because of the different tax treatment to an MLP I’m not really sure that this is going to be a great candidate for suddenly recovering when text lassoing pressures and bait at the end of the year or that text actually influencing it down this volume is is very concerning because it is a company price trending down and having responded to 993 if there is a break under 993 got to be concerned with that extending down to the next level okay I understand Rite Aid any chance from cover to 6 Rite Aid situation I’m not going to be able to from a dollar 92 back to 6 without seeing some kind of bottom e action that I can measure and then extrapolate out what levels would satisfy that but just to just to point out 6 happens to be a higher prior low a higher priority that’s already been tested after being broken so if 6 were recovered it’s probably because something even more substantial than that was on its way to being recovered 675 and even higher 757 huge Paradigm Shift probably would have occurred at that point anyway but until there’s some kind of backing and we can call this guy at 275 it’s prior low 2:15 so if somehow this pattern produces a close above 275 and holds 250 now to pull back before closing above whatever that that first road of hyenas say 275 is up to 3 330 something above 215 say 220 specific levels calculate what the objective would be possible objectives as far as November I want to see a fresh High doesn’t have to be I would be afraid of a fresh low I would I wouldn’t buy the weakness but I’d identify a place to buy strength not necessarily to get back to 6 but something that would explain a thing of January that candidateI would also cost and everything seems to beCanada so here’s an example last year we got ahead of itself bounce it in November and into December and lost its January effect sponsorship alright any other retailers Jamie I don’t think we’re going to have a great question I don’t think we’re going to have the high profiles I don’t think we’re going to have a lot because you have Princeton Sears Kohl’s it wasn’t really Under Pressure through the year debased this what if this is the kind of pressure you want to see through the year end of Thanksgiving get some sort of a retest in December this clearly didn’t didn’t behave as a January if I can it would but this I just want to look for it even the beginnings of a January that candidate we don’t have that here for Kohl’s obviously JCPenney is possibly a January Fete Canada down and down it had sort of I think we can get rid of this resistance which never recovered that last Touch of that trend line that’s imperative so the downtrend maintained but put out a fresh load that’s pretty quickly recovered here so that’s interesting it’s not a trend change yet but we have a November low if November’s Lowe’s were tested I want to look at that but meanwhile have a good just hold 285 and then close back above these highs that would be good going but the the tire profiles just haven’t had that kind of a year maybe Sears Under Armour you can even look at last year November December January you can see the disappointment clearly there’s that news reaction exacerbated by perhaps artificial buying expecting a January but clearly there’s news herewhichat 3250 well that’s being attacked is being attacked a lot more aggressively than I was expecting after the reaction down from earnings it really Consolidated and resumed very quickly but without volume and prove it so I’m still sticking with that 3250 Target and no higher or any other is anything else let me know okay thanks everyone for taking time from your weekend to be with us at the Saturday review the chart was going to be open tomorrow night I will be there later yeah we’ll see how the markets reacting to the news okay have a great weekend everyone take care

Assuming the week doesn’t begin with a collapse, the market remains within the orbit of last week’s highs. And there’s room for noise above those highs. But market’s behavior and measurements have been distributive, or at least reflecting difficulty in attracting new sponsorship while existing sponsorship’s targets are met. This week’s Saturday Review discusses the setups and price levels that would indicate which path the market is taking, and where those paths are being abandoned.

 CLICK HERE TO WATCH

The following stock requests were reviewed in this order:
GE, ARNA, AAPL, AMD, BABA, ORCL, TSLA, NVDA, MU

transcript:
good morning and welcome what happened to okay it is okay it’s time for Saturday review interesting interesting week one of the metrics apparently I don’t keep this this data or these data current but apparently this is the first week in two months that has been in Decline which doesn’t mean a lot in our stuff not so much as what actually was accomplished during the week because nothing really was sellers didn’t get anything done buyers got more done and sellers by being patient by letting sellers have some room to express themselves now. That’s not to say that the point to buyers being patient in this particular case giving sellers room to express themselves I eat wrap themselves necessarily in this case means we’re about to launch a new big bull leg you can see we’ve been pretty much in a trading range since the beginning of November two couple weeks it can also mean and as I’ve been suggesting what it does mean is that buyers are really at the bottom of their sack of tricks to keep any sort of upside momentum alive for instance this week they left outstanding Gap back to Wednesday’s close Wednesday’s close and potentially also a new Lil beckstrand extreme that formed after Wednesday’s close in the Fulfillment of the afternoons Wednesday afternoons bicep Target that have been left out standing at 25 9450 that was touches actually attacked overnight touched touched again and then the overnight slide to Matic overnight slide that was even that’s 19 points and then an extra point into the open right here before bounce and then to 20 points and then another 20 points much more into the noon hours low the noon hour is low right back down to 25 6375 the significance of that I’ll remind you of in a few moments but the point being here that there’s left outstanding this Gap was created by opening under a prior low opening under the entirety of that section that contains the Gap and it helps to break free from its momentum but by the close it wasn’t actually rejected the gap down under Wednesday’s low Thursday’s Gap Downunder Wednesday’s low doesn’t matter that bounced back into it and Wednesday’s range at the close at Thursday’s close Wednesday’s range was for captured there was an opportunity to not recaps writ to stay away from it but the market couldn’t do that so there’s couldn’t accomplish that and so may take a while it may have already taken a while and I’ll be ready to recover but a recovery Remains the likely or scenario however temporary that it might be there’s still room for noise on retesting intraday retesting that is Tuesday Mornings HighTuesday Mornings High itself was really a actual test of 2590 50 which it already been satisfied toshow me within a couple texts Monday’s closed 25 1950s roll events coming back to that 2563 75 2590 50s relevance was is that it was the next higher objective put into play by closing above 2563 75 which was done several Mondays ago it was done several Mondays ago it wasn’t confirmed the following day the following day nearly failed to confirm it and this is really controversy in my own mind since 2563 75 is clearly recovered on Monday but I mean I’m sorry I’m Friday I think I said Monday on Friday several Fridays ago but on Monday the 2nd consecutive session the second consecutive session available to confirm it needing in this case being an objective not being a break out from a multi-session range which has a different confirmation rule the second consecutive session must close higher than the breakout session but in this case just to exceed some objectives and pattern objective only requires that the that the clothes that puts into play in the next hour jective not be rejected the following day so that was recovered several Fridays ago was on the cusp of being confirmed up being confirmed 2563 75 was definitely not held but by the difference of several ticks only through Monday’s close maybe the proof is in how that week reacted to not having maintain the close above 6375 but in any case the following Friday did recover to close web 6375 the following Monday did maintain about 6375 and it’s 25 9050 Target was Matt here the next Monday and thoroughly more thoroughly tested on Tuesday and always seen it 2550 the attack on the recovery to it always seen in the interim have been has been resistance but at the same time I’m leaving unfinished business above or leaving at attraction above so long as the market remains in its orbit and that’s what Thursday having closed back within Wednesday’s range remained in the orbit of the Gap back to Tuesday’s close making it likely to be filled neck and be off that can be done away with that attraction can be neutralized Buy closing under irrelevant support the thing is Friday had that opportunity Friday had that opportunity by 1.8% of Thursday afternoon’s recovery and still not closing lower breaking down the recovery has yet to close but Thursday and that’s been limiting buying pressure that’s been suggested influences Wednesday’s close which by the way there’s room for 2675 we could just say 2601 could be tested and still be considered asinfluenceshowing pressure that’s taking more and more of a toll on the pattern especially on Thursday there was no bullets reason at this point to return their 2563 7525 6375 having already been recovered through Friday and confirm through a Monday having already held as support which we can see here on a couple Thursday as well that’s her last Thursday and then even last Thursday was preceded by an overnight dip Wednesday night testing 6375 just no bullets reason to be were testing it after those tests that already produced a fresh High that’s not to say that 6375 is going to break when it’s tested but it’s at now giving us an indication that we are in a distributed phase that this is topping that but for the immediate setup of gapping Down Under 6375 and not returning to close within Thursday’s range of of 6375 in other words closing under 6375 would be the beginning of a potential 2-day set up that could also get it done reversing momentum down or the likely scenario because of the hesitation in Breaking lower into the weekend when it would have been very opportunistic for sellers to do that and they didn’t or couldn’t the likely or scenario then which is to fill the Gap probe fresh eyes finish topping backing and filling Distributing and then break 6375 again this week after the prior test support at already been productive with the new high that this is all in the name of a bigger top and we’ve been here before and the market continually has found ways out of that not always it’s going on with the bigger top and put in the bigger reversal and bottom and resume the rally and that maybe what happens here as well one of those two scenarios either making it out of the woods here or or putting in the bigger reversal whether it be through price or just the extended amount of time spent backing and filling there’s an instance of a top penis with price resolving down and getting it done another copy pattern this was a lower high left a retest of the high outstanding but that didn’t prevent we’re back in 2015 now that didn’t prevent this is back when if you’re new to to the markets this is called a down leg may not be familiar with these anyway but took care of a correction in terms of price the traditional way but it’s a pretty obviously so we’re just waiting for the engineer’s to slip seasonally bullish influence of a holiday the holidays like Thanksgiving and ChristmasHalloween in April Fool’s Day still not known for that effect but yes there is that seasonal influence of Thanksgivingcoming into Thanksgiving several weeks away or just a couple three weeks away and that’s a seasonally bullish Factor not for good spirits but for the lack of participation more so on Christmas because it’s a global holiday but still someone on Thanksgiving because of the dominance that the US markets still have not dominating but a large portion of the markets and so what its participants are otherwise occupied then they’re less likely to take up trending so as we discussed last week at the market is going to correct itself for cheap in its shares basically a constructive mechanism a tactic that it takes from time to time call the correction so that it doesn’t get into a bubble or blow off top that has more damaging ultimate correction then it needs to start getting it done and this may be the beginning of getting it done and I’m glad you said that now because I wanted to point out on the timing aspect I don’t want to go so far as to call the cycle but you can see the cyclic ality here and hope hopefully that answers hopefully that answers the likely next question is can we get back to the house finish that topping neutralize the attractions above like the Gap back to Wednesday’s close potentially the noise of to 2601 and still have time because this is pretty much the week that has to get it done as to get a down swing in place into the following week ahead of Thanksgiving and so looking at me or the measuring these moves the seemingly on the 2nd for instance that was it and then within a couple of days right back at the high and higher and so there is potential the cycle is telling us with the pattern of the of the dips and recovery and there is time to get that done pretty quickly and if it’s not being done right away and impatiently that sellers are acting or that buyers are letting them in other words gapping down under Thursday’s low under 6375 already taking it out already heading to those pull back or corrective targets that we discussed have been discussing the last couple weeks lower prioritize for instance just a moment of this leg so anything that puts us down into the 2510 or 2500 area it’s kind of difficult to get that done to that degree if it’s not already on the way pretty soon next Wednesday to the day before Thanksgiving so that would go with getting a fresh high-end first that’s a great point then if that’s valid or to the degree that turns out to be any kind of initial strength on Monday preferably by gapping up not just above Friday but above Thursday’s range Wednesday’s rangein the Monday’s open will take very seriously for being able to extendthere is a new trend High clothes that’s sort of outstanding it’s not a requirement at this stage for being Within a prior range we’ve got a couple consecutive though opportunities for new trend I close that were within a prior entered a range so they’re a little suspicious but I’m giving still the benefit of the doubt to them being fulfilled so don’t want to see just a very quick uptick or blip up rejected the same day and then and its resolution down I don’t want to see that resolved by gapping down because that just leaves the attraction above not for the purpose of a bigger top but for the purpose of inserting a very aggressive down leg we talked about this during the mostly during the afternoons but there are some setups that have specifically this week happened during the mornings that were very likely to resolve in One Direction because of a number of factors at during those particular situations and then as I presented those ended with the caveat that because they were overwhelmingly likely historically based on these factors to resolve in One Direction don’t dismiss any counter-trend action because in these setups that are likely to resolve in One Direction if they don’t typically that means that there is something very substantial behind it to be able to push that hard against that preponderance of evidence and One Direction and it does tend to be Steep and if the market decides it doesn’t want to or can’t or it’s gotten too late to put in a bounce first neutralizing the outside attractions it will have to do that to the downside as steeply aggressively impatiently as possible sudden Steep and substantial but the point is being disproved in this instance means a very sudden snap until the end of the year measurements not so much I don’t think this is a major component but you know we look at Facebook is up there looking at the things Netflix you can see lower high maybe the beginnings of Divergence Amazon clearly a leader apple is fight back but I should point out another matter that it is hitting a Target in here Tesla up here but also so pretty much led by just a handful of stocks so answer the question or finish the question weather fund manager I don’t know specifically to that but if we get a get a downdraft in then they’ll be able tobut if we can get back to 2525pre-thanksgiving into and out of Thanksgiving by the way that’s a lot of a lot to ask of them to be able to bring it back into pie or above prioritize but it still gives them plenty of discount to be able to do that or to be able to chase the highs getting to hire prior lows in other words so I don’t know what kind of influence they will be in it so I think a lot of it will also depend on what sort of earnings expectations will be having for January’s quarterly or annual actually results the comparisons and then get into stocks individual stocks so basically lets get a focal point on ES that’s our control group it’s not really a great head and shoulders pattern but let’s just refer to it as a head and shoulders that they want to put out this high or low that’s coming off this upslope that started getting volatile lower low higher high Sun expanding triangle into a complex Head and Shoulders that’s what they choose which are they speculative version got that upslope speculation to the rest took a pause while es was extending higher but is come back and come back with a vengeance here’s that upslope and upslope in the ES that’s so different and then cues what’s really different though is this versus that and kids are definitely out performing and remember Wednesday’s close in es was a lower high speculation still alive and well or resurrected at least big money goes to to get safe when it has to be in stocks but wants to be in the predictable also the upslope butt when of course ES was consolidating and it’s expanding triangle when to use were in a down slope that’s when the Dow is getting a lot of its best business from Big Money it was at the expense of the Dow and since then the Dow has been flattered or underperforming still holding on not reversing down but we can see it really hasn’t had it in a whileor maintained any games where is not with the Dell which did make a lower high on Wednesday didn’t recover back to the morning Sky Thursday afternoon so does that mean that there’s more distribution in the Dell is that distribution cuz it’s some point keep in mind this isn’t just a game of musical chairs on the way up there only two of the indexes let’s say can be seated at a timebut the players get to stay in the game at some point the chairs do get taken away and it some point all three do you need to turn in the case of Correction or reversal of any sorthow does something like this end do we expect the Dow as I do expect the queues and he has to follow suit while the Dow stays depressed or suppress waiting for them I actually know what I’ll be looking for is under performance Suddenly by the day when the dad tries to get back in line and I don’t mean to say this is Monday but maybe it’s Tuesday in other words something fairly quick but the point here being about the timing just the relative time and relative to nq’s and DS and that the dad does get back out to the high tide it completes its it’s retest of the eye along with the es along with them kids that’s typically how these turn is the signal and then they combine in unison again they get on the same page and make the turn in unison as well and then the musical chair game for Zooms in the New Direction so I’m not expecting the down to continue underperforming itself but to struggle with a fresh high and then to reject a fresh high or retest of the high and anyway with one exception and that’s the that’s the gap down or break under Thursday’s lives so the Dow closing closing under Thursday which is that 2563 75 and then also and q’s closing under Thursday’s Lowe’s which is a little still leaves room I would imagine I would expect actually not just imagine that if the Dow and he has both were closing under Thursdays Lowe’s gapping down or otherwise that nq’s would be taking out it’s combination of lower lows is taking out the 6061 91-95 as well in the same session so pretty ugly session so let’s reverse-engineer going to be so dramatically off the immediately negative day that’s easy is closed under 6375 just his last relative low but because it’s a because it is a high or low or approximately higher low that it probably takes out its prior low as well but we’re expecting on that day if in fact that they were 6375 they were too close under Thursday is low but also under its prior Thursday low what do you think would have to be a company that fundamentally headline wise we have to be single getting killed as well so if we’re seeing that in the headlines and Thursdays coming so long as is underperforming which it’s not now but would underperform here’s and Qs a performing relatively but clearly getting wake up call or warning shot but if I were to come back and they all got on the same page againspeculation performance suddenly goand they’re all free to turn down in the end you know as soon as well alright so not looking for any kind of weakness any kind of overnight weakness on Sunday would have to be pretty shallow pretty shallow remember one big Point here to make and then we’re going to go to stocks is what happened on Thursday at the low this was a very big deal and unless you’re looking at the timing windows and know what the pricing is it’s not going to make a big difference everybody can look at this and see a low okay Trend change okay but as we were looking for it the next large active basically under 25 8025 then next large active which wasn’t put into play as a renewed bias down but the bias down Main was maintained the next little bit of under 25 8025 was 2570 can we got to 2570 right before noon actually stuck 2570 25 same thing in this instance was entered testing 2570 and the new tower was exited not just at 1 but 1 through 120 the new tower was exited a little bit here but back about 2570 and there was an interim low and that in itself forgetting the pricing that 2570 happened to be relevant to being the next lower objective that in itself is structurally entering and exiting trending session at the new entering the noon hour and exiting the noon hour turn during a trending session off input signal low not always but intraday had that low been requested we have had a high degree of likelihood that it would hold its test and basically catapult backup that didn’t happen of course that would have been a very significant bottom that would have trapped a lot of shorts didn’t do that but now let’s throw in that we do know that 2570 did satisfy a lot of sewing pressure was a relevant level and the noon hour the whole basis for that setup is at the noon hour isn’t otherwise irrelevant timing window so it reflects weak handed selling pressure that weekend is selling pressure got to 6375 and other relevant level when they weren’t going to get anything done that was a pretty big turn that doesn’t mean it’s going to hold forever instead it tells us if it’s ever tested it had better be recovered pretty quickly through a relevant timing window or we’re gone the support there is history if it’s not dealt with correctly in this is what brings us to the potential for any overnight weakness Sunday night Monday is open his replacement potential back into that range 225 60 850 down to 25 6675 his potential down there and there’s 2570 the relevant level of support I wouldn’t expect if there is any weakness under Friday’s low that it’s nominal I would expect weakness under Friday’s low to actually get us down to this rank and here’s the problem if this 2570 range is probed but not rejected not recovered through relevant timing window we are goneunder 25 70 it better recover backup of 2570 presumably from in this range through a relevant window so overnight if that’s tested and we greet the open bag of at 2570 will be very much looking for something very substantial I am drawing this to scale by the way this leg very substantial Ricochet effect slingshot effect from here through this room and tell me when you’re coming out of the open or if the morning the Vias environment where in the climb and exited back above $0.25 to get that done that as well probably not later in the day later in the day there’s other issues that come into play if this is going to be done it’s probably going to be done early if that’s done early tested and recovered substantial very brief rally underway that’s the deepest that I could see Sunday night dipping let alone Monday morning and still keeping alive the attraction back to the hives under there we’re headed likely to closing under 6375 potentially down the 2510 2500 any other questions please go ahead and post them we can get rid of this what a question I never going to be able to answer specific question what might be another things on the horizon that are not priced into the stock the question I can probably answer or address at least is whether there’s enough sufficiently discounted in the stock that getting past the initial e- need York reaction to such news if we want to specify then like the dividend cut would it likely hold and we’ve got a couple reasons to suggest as much but not a lot of reasons one reason is I know it’s a higher price low but I think we did this measurement then we look at that store this week how old is 6118 through the close it held its room for noise intraday so basically qualifies by proxy as a double bottom held these lower prioritize so yeah if there were in it and initially negative reaction to such as cutting the dividend I would expect it to be absorbed down to 2010 20/20 this is pretty much a last line of support anything lower says there’s another down leg underway new Lowe’s as far as the calculation of objectives potential could take care of this substantial support to 1825that’s what I want to look at it again for theHenry covered started recovering that would be pretty bullish member we’ve got we’ve got a January effect season coming in so we start to see tax-loss selling it’s hard to see that get out of hand see if we can get some sort of pre-holiday Bounce pre-Christmas bounce and then one more one more sell off to whatever degree higher or lower just get another down leg in there it’s going to be tough this is at a multi-year low this isn’t just retracing rally for the Year this is under multi-year higher highs so it can be tough to justify ahead of ahead of tax law selling pressures of dating which this is not it that’s after Thanksgiving it’s going to be tough to justify getting along maybe into some sort of a crash if you have any other this was a big big highlight of mine that I’ve been sharing talking about going to summer nice pullback nice resumption of the rally but I’ve been pointing out that this rally has been resuming back to the prior High without volume really participating haven’t really seen any significant up surges and volume there’s one but it’s productive it’s not predictive that’s productive and then perhaps and then 29 being the highest objective here came into earnings or already softening ahead of earnings in earnings reaction pretty substantial this looks like a pretty aggressive and patient recovery I really can’t give it too much benefit of the doubt volume sinking again 29 and I’ll give that there’s something else going on but otherwise be very careful up here I do like the performance I do like the recovery indicating that it still got its its support its defense had to close above 29 that that defense The Defenders are getting getting very aggressive and they want to stand in their way I’d like to benefit from that but otherwise just to spend more time consolidating down here before trying to recover it would be would be more at least break out on as I stay on expanding volume not just price it would be a lot more confident Thursday as far as gapping down with them Thursday we won’t be able to take a gap down any lower than Thursday with any greater reliability of it extending down that’s not the only negative that there’s also a pretty much immediately any way to recover from that’s another fairly short termotherwisefor filling the Gap to Wednesday’s close and probably get up to 2601 alright Apple just update Apple this was a cell signal we talked to that set up back when iPhone 8 was being unveiled oh by the way I’m sorry I’m going to rest for a moment here iPhone users anybody here watching this or during the day logging into the chart room on iPhone that iPad iPhone having issues I know it’s been it’s been possible to use iPhone IOS previously I’m trying to figure out from what I’ve been hearing whether there’s something new out there or a new conflict of any sort that’s preventing accessing my iPhone let me know if you are if you had any experiences or negative experiences with iPhone or if you are actually successfully accessing iPhone or just not fine Apple’s iPhone announcement was optimistic because apparently because that you were able to use as a major selling point that the iPhone 8 allows you to access the chart room maybe there’s some other stuff and then it ran into the problems with the presentation not a lot of demand exploding in your pocket stuff like that to meet our pullback Target and the bicycle basically 173 to 174 50 which is meth volume starting to contract or has been contracting so is leadership goes keep an eye on Apple this move is done any of this because I just have a couple more AMD which we’ve talked about often but this up trending support with resistance this inflection point basically it was finally recovered and it’s most optimistic finally recovered a couple weeks ago still overlapping prioritize still within the range and got blindsided I’d have to say back down to support that potentially this is a paradigm shift that’s where trade lines can be helpful I don’t generally use other than to graphically illustrate the trend but this also helps that there is a new trend to a paradigm shift or if this is just temporary later if possible if this is recovered and if it’s recovered will look at this episode but has a necessary temporary detour but also when it makes this recovery attempt stronger one thing that got us into that was expectation despite breaking that uptrending support despite projecting that inflectionis the projection down here that was a couple weeks agoplay Daddy 1063 but closed back above 1098 which doesn’t necessarily signal momentum reversing up but to see the stock being so responsive to that pattern does give us some reason to at least suspect that this area is going to be defended that this is potentially just a temporary break remember in order to overcome a preponderance of evidence or elements in One Direction arguing for One Direction because historically that’s how they work out it takes something very substantial not an equal an opposing Force but something overwhelming like a Gap Town trending down relentlessly so that fits the fits the definition it’ll have to be rejected pretty aggressively as well so far here’s just a corrective bounce to the 38.2% they need to get out of 13 for confirmation sake but that speculative bounce may be a little impatient has been retraced to fill the Gap outstanding from the low very recently done that was Thursday and now Friday there’s really no reason no bullish reason to further delay a recovery if this is bottoming so the AMD is bottoming here if this is just a false break or if there’s a big bounce coming then it should be fairly obvious no later than Tuesday’s close should be retreating back into the weeks by weeks as last week’s highs and volume should be pretty aggressive assume some sort of news might be following that as well or a company that I should say to give it to me but in any case and then out of 13 can we look at it as a short otherwise because it is sitting at a high it is still in a range and if this is distribution then there’s I’d have to say six 7:15 to 6 so yeah break under 62 1060 wood Target again 7:15 7 and potentially 6 sub 6 Alibaba which I think I think that’s one of the things that are in the new Fang index the thing Futures Contract I should say Baidu Tesla Nvidia Twitter those are in there along with Facebookalrightokay trending up while overlapping we’re not getting complete retracements so these are this is accumulation I can’t call this a cell signal new highs or not a cell signal but in the event of a pull back there is substantial pull back from here from this formation this word a break higher and start trending up there’s 205 and 233 potential formation prior to breaking a fire where to react down there substantial support at 170 3738 under 170 there’s substantial support at 153 what 53 has to maintain has support to maintain the rally so there’s nothing about this pattern so all I can do is identify its next potential jective 205 and 233 and what pullback limits can hold and then need to hold to maintain that upside potential because it’s not a bearish pattern I couldn’t tell you what breaking under you know what the downside risk potential is substantial like 53 without seeing a bearish pattern to get there for the Paxil pattern that gets there right auricle any other stocks Now’s the Time Tesla another one that’s in that any interest in trading the Fang Futures index let me know I’m considering covering it actively and Bitcoin by the way considering it I don’t think you can just cover Bitcoin I think you have to cover two or three kryptos but Bitcoin is the one that’s going to be at Futures are going to be traded on presumably this next quarter this quarter Nvidia also in the thing index presumably it is extremely important support and just as important is now having been tested for a couple days there’s really no reason to further delay bouncing to fill this Gap at least 50 to 75 development to close after 65 for a couple days to close under it let alone two not already be rallying out of it 4865 a little deeper and still bounce and still like to see that because I would come from a position of weakness having failed to hold 4865 originating a recovery from there from below 4865would very likely would not be ablealright Tesla Tesla was it’s a very sloppy pad pattern always has been but I can do the calculations and it gets they all get probed and they consistently require a second consecutive confirmation and consistently those confirmations are pretty substantial when they happen but in any case we did have resistance that was finally taken out to the upside not so far as it could have been but do at least structurally produce a fresh High by the narrowest of margins are we test the prior I then again uptrending support not a predictive feature but still to reflect an uptrend that is broken that is holding his resistance all the while chipping away at support the next couple of support levels here being tested down to 290 to 75 so is this a big buying opportunity is there a slightly lower pullback objective in play like the 260 area what would tell us that this drop is done it really hasn’t rejected the gap down doesn’t matter that it has an extended it just hasn’t rejected it so it’s likely that we are looking at a deeper pull back therefore that the 260 objective can get met bouncing back to the 242 area is possible as higher Pryor Lowe’s but it would need to hold as resistance to maintain that downside potential I know it’s a big swing but it’s Tesla 4039 whatever touched but not triggered and not just not triggered but as an inflection point pretty big inflection right back uphi is this is going to get beerus anytime soon it’s going to have to it’s going to have to avoid getting any high tide it’s really can’t get any higher and still be bare I still have potential to get bearish without first extending to its 2:30 for the 73 Target which looks very much intact so you can use it or start looking like it’s falling apart it’s falling apart but it has pretty strong support down to 205 204 but meanwhile it’s Target remains intact at 2:30 for 73 micronis the kind of company I know I like to see where the handle begins pessimistically short of the cup scrimokay for for my Grande I’m trying to Maine’s intact I can see a project out to 5950 different resistance it might come into play along the way at 5450 10 + 5370 I want to look at Price action at those assuming that this does continue trending up or want to look at Price action there to assess the uptrends strength 4065 so maintain that 4065 it support if it happens to be tested and rejected pretty quickly within a couple three sessions and it gets everybody for the volume is increased by the way expanding remaining heavy despite Contracting a little bit did I get everybody let me know if I missed anything what if any others come to mind if not that’ll be it for this week’s Saturday review alright that is it thanks everyone for coming appreciate you taking time out of the weekend as always the chart will be open again tomorrow night for the Globex open if I don’t see you there I’ll see you Monday morning have a great night everyone take care