Saturday Review

Another new trend high close on a Friday? Not above the 2585.50 prior intraday high as would be preferable. And not above the high’s 2583.50 retracement as would be optimal. Right on the cusp, at or above the high’s 2581.50 open, which is both sufficient and suspicious.

Sufficient to be aware of the likelihood for another new trend high close. Suspicious to take seriously too deep of a reaction down, or the durability of another new trend high close. Touching 2563.75 again would be too deep. Neutralizing the next higher objective at 2590.50 first would merit even more caution for having fulfilled that much more sponsorship.

Whether a protracted shallow range, or a deeper retracement, some sort of correction is likely to develop while it can still be rescued by Thanksgiving’s seasonal bullishness. I explain that concept and those levels, and more, during this weekend’s Saturday Review.

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The following stock requests were reviewed in this order:
TSLA, TRUP, ULTA, BCS, ISRG, TRXC, AAPL, ARNA, AMD, NVDA, MZOR, SBUX

good morning good morning welcome it is Saturday it’s time for Saturday review we didn’t have a Saturday review last weekend we have one this weekend as you can see and then the next couple then it’s Thanksgiving Thanksgiving weekend no Saturday review on a holiday weekend a holiday which is seasonally bullish it’s not so close yet that it is overwhelmingly influential but it is still out there it’s November it’s past the first week of November and so the market does think of things that it might not be so certainly things that are in the back of its mind sometimes working to the frontal lobe or through the cortex now and then but to have the ability to look at the calendar and see just because of the calendar when predominant amount or a portion of the market if not an overwhelming majority of the market just the majority of the market less than a majority of the market if there’s some substantial size of the market that is on the same page looking at this future date coming future date which is seasonally bullish by the way seasonally bullish and looking at the calendar and seeing something like this if your big money and big money not above all else but among all else has not a duty so much as it is not an obligation or Duty so much as a CREDO not to Royal the markets if you want to be a member of big money get along and so you can’t really Royal the markets and so if your big money and you’re looking for a spot not necessarily to get off the merry-go-round but to start handing kid or two to your spouse so you can get off later or maybe because they’ve been on there for long enough that they’re starting to look a little green in the face you might want to give him a little break well you’re going to look at. Like upcoming she’s no strength and know that that’s a good opportunity to start Distributing into it’s not at all the overwhelming rationale or element to the rationale of when to sell but sometimes it can be just enough to make that decision and often it is when there’s seasonal bullishness ahead so point being that still doesn’t prevent pushing price lower or that downward pressure when it’s coming from such a sizable contingent if not an overwhelming majority or even a majority just to have a sizable portion of the market on that same page and so that is silly or probably not immediately but at some point in here as we come into the week not the penultimate week to Thanksgiving week Dupree penultimate week it was a Jeopardy question 2 weeks ago actually the pre penultimate weekgood opportunity to start looking at things to get rid of and we’ve seen some of thatsaying some candidates appear wider held institutional Darlings momentum stocks nifty fifty the names changed through the years but it’s the same thing and so there’s an opportunity for the market to get some sort of a downdraft in and as has been the case and all other downdraft so we’ve been playing at either the vulnerability to or the timing of we’ve only been looking for temporary dips and I’m only looking for at anytime in this pattern at this stage if there is a dip a temporary dip the dips have not been so far when they’ve appeared they haven’t been from either extending very far above the private consolidation and or haven’t dipped very far to facilitate a big correction other words it’s been plenty of money moving in to absorb the distribution so for instance or I should say let’s look at those to just going back to hear almost if we went back and we can look at November and here’s a nice downdraft into November that then gets caught up we haven’t had that here in to November yet so let’s go back to this consolidation and that was a nice corrective lengthy relatively sizeable pull back into a prior range and then a good healthy move up consolidation preliminary breakout retest another big healthy move up and then something interesting happens this is back in April we now have two consolidations in a trend in a trend that have broken higher without retesting lower prioritize pull back doesn’t test lower prioritize pull back doesn’t test lower prioritize so trying to break out gets more difficult over time when sellers aren’t really giving it their all or aren’t being forced to before the market finds enough new buyers or renewed to buyers to take off again and it’s gotten kind of sloppy since then really difficult to get out of here if you turn your monitor I’ll give you a moment to do this grab the monitor with both hands one hand on either side and just kind of tilted a little to this side I wish I could do it or you don’t have to do that but if you did that you would look at this range from February through August or could look at it it’s a channel and this is the point that channels is they really are bases and it doesn’t look readily apparent because this happens to be trending Upward at the same time but if it were shaped like this or angled like this or even angled downward instead of upward you consider that to be a base so a lot of distribution along they’re sort of like a running correction that’s being absorbed anyway from higher and higher Lowe’s that’s optimism stop that optimism is bad optimism is necessary increasing optimism growing optimism is necessary 2 + table and extend a trend and now that optimism is broken higher and what do we see we’re very far removed from that channel again and when that happensone of two things becomes or at least oneI’m going to play one of those is just the hesitation the consolidation before extending higher so here’s an extension higher are we entering consolidation phase were pretty close because 25 9050 is the next higher Target that was put into play by having recovered 2563 75 for two consecutive sessions which we did last Friday Monday and on a second attempt when the prior friday-monday didn’t confirm even held to test 6375 is support after Wednesday’s close Wednesday evening and then Thursday morning to distinct collapses that held and we recovered to 6375 is a lot of attraction to it I probably a little bit off right here but 6375 is a lot of attraction to it but it has been holding as support and it has been rewarding its Defenders with higher and higher highs that are coming into the next test 25 9052 next calculable objective where another dip 225-6375 would tell us where more in. Like this if not like this had getting ready to enter another basing. At the best weather that facing is tilted upwards which I doubt it would be weather that were an extended consolidation just riding us into and out of the new year which is a possibility and unusual possibility historically but this has been a market a bids when there’s a seemingly endless supply of money earmarked toward equities chasing price higher or sitting on reserve ready to move in however natural that may have become or conspiratorial you might want to make it it’s just a reality than that Corrections don’t happen the longest stretch without a name your percent correction and that’s the biggest Factor so either of those scenarios is not out of the realm as being a satisfying a correction so to speak correction not the traditional that we think of when we look at individual equities individual equities correct all the time was the Steep deep downdrafts that eventually a recovered but when you’re dealing with that pretty much one characteristic or single characteristic items like an index where the internal components can do their own big Corrections the Supra characteristic is that the index itself doesn’t have to correct other than through the passage of time holding it through the passage of time non-traditional correction before resuming its rally so that’s also a possibility that we can experience are actually just extended sideways ranges ranges that have the same effect the same effect on RSI indicator most recent data and once you get past earlier than x periods that Dad is irrelevant it’s not part of the copy Tatian some indicators evenly wait all of the data in the set some are front-loaded so that more recent data has a greater effect on the calculationbut once you get past those X. It’s irrelevant and so it’s a waiting game and this can be a correction because older data that had taken the indicator of her butt drops off and without price dipping to a new low the indicator can get oversold so it’s not innocent. That new of a of a feature to the market but it’s maybe a shift or. Where there’s a shift and what kind of Corrections there are so when I speak of Corrections or the risk of Correction or when we look at the vulnerability to Corrections just know that they can play out either in deep down drafts with your grade intraday that’s really all we’re playing there’s always at vulnerability even in the sideways ranges or they can play out and have been playing out more so in terms of stalling waiting for old data to drop off waiting from memories to get better or worse so where are we now we’ve had some interesting setups here consecutive Fridays with new trend High closes new trend High closes on Fridays require there to be an eventual higher close not immediate necessarily not just one necessarily but another higher close just because historically Trends new extreme closes on Fridays and that’s what makes it reliable is that it’s been reliable so going to continue to be as reliable we had for instance new trend High closes almost on the 13th or pretty much but still within prior ranges just above the prior range just close enough to wonder or at least give it a benefit of the doubt with some suspicion and I closes here’s the 20th Friday new trend High clothes didn’t get an immediate I certainly didn’t prevent a big downdraft but we knew in that context there’s a new trend close on a Friday so there’s going to be another new trend I close coming so with that context testing support as a better opportunity to hold 27th new trend eye closed didn’t have to happen but it did and it was above or in a session that was probing above all price ranges so we just have this characteristic of that session that says that strong hands those are committed buyers they had their opportunity to sell and they decided to end the weekend and face the uncertainty of two days of a liquidity with that extra commitment not just buying them up which sometimes in perspective that optimism into the face of adversity can be weak handed and therefore bearish and potentially it is not patience but sometimes the money that needs to get invested is strong enough that it’s on a trend and it turned out to be that case this week as well we assume or we assume at least assume to the degree of giving buyers a benefit of the doubt but a little bit suspicious here because yesterdaythe clothes while it was a new trend High clothesno her clothes since are no clothes that high since last Friday had probes above it but noticed that yesterday’s session didn’t the probe of all prior intraday ranges so in one characteristic of one definition that I use that’s really just noise buyers did not produce anything they had not previously produced other than that new high close but it was within a range that had already been developed not thoroughly developed but not on thoroughly it have been probed overnight as well so there is some suspicion of The Upside momentum that even if we knew it complete certainty that this is in fact a new trend High closed on Friday of the store that requires there to be an eventual subsequent new trend High clothes doesn’t mean that the market is invulnerable to a downdraft anyway we would we would just assume that it’s not because it just did that he just went through a lot to insert this downdraft and the recovery to keep up with this trend that by the way it’s getting more volatile or at least increased its volatility from the narrowness of its ranging over the prior couple of weeks it’s already played a couple weeks ago when it fell 250 which was a relevant level that was actually the pivotal load to the employment situation reports reaction but as we know that’s 2543 that’s being tested a previous dip that been at been recovered and it’s retest just like the employment situation report and its retest of 2543 lighted lighted testing of that and then last week 925 6375 was the next calculable higher resistance and again on the 20th got to close above 6375 to indicate that the next higher objective 25 9050 would be in play based on it being confirmed by not rejecting 6375 the next session the next session closed actually one tick under 6375 enough to give one side or the other benefit of the doubt if you want to but to be suspicious about it so kind of a watch and in fact there was a bigger downdraft but then last Friday 6375 recovered again and on Monday not rejected so that tells us 25 9050 is in play Above was that the last we’ve heard of 2560 375 because Wednesday night after printing a new high at the open and pulling back throughout the day Wednesday night react Wednesday evening reacted to A- Led Balloon trial balloon was floated about the tax reform elements Market didn’t like that it recovered all the way up to a rumor floated that that idea that have been floated the night before wasn’t going to be wasn’t going to be part of the package what do you know and then ahead of the report baggage being introduced another collapse both holding 6375 again 6375 recovery confirmed recovery of Last Friday and Mondaywould take two consecutive close is under 6375 so just dipping down from a new hide it says 6375that is an opportunity to get a lot of sewing pressure out of the way without it reversing the trend down and it had two times to do that overnight and intraday so we’ve got last Friday and Monday two consecutive closes above 6375 in the interim and they’re productive with a new high now there’s testing 6375 the overnight two different timing Windows overnight and intraday could have been to intraday timing windows but clearly when was overnight one Saturday two different timing window 6375 holding at this point there’s no bullish reason ever ever to return to 6375 if something were to happen to drive price back down to 6375 if there was that much sewing pressure even just a flash crash fat finger whatever the market will then want to break eventually under 6375 it’s sooner rather than later. One well someday it’s coming but if ever 6375 were touched again it would immediately be on defense bouncers would be likely to fail meanwhile 25 9050 is in play and when 25 9050 is there will be a new pull back limit based on where that session begins among other bells and whistles so we’re looking for which is also just ahead is the seasonal bullishness not so not so you can imagine that a test of 25 1950 or whatever the next higher objective is in this scenario anytime you see the scenario where there’s a seasonal bullishness around the corner but the block you’re on has that you’re walking on it the time has its objective just a head vulnerability to something like this quickly getting 9050 out of the way and then getting on with another pull back squeezing in a pull back while it can be productive sizeable at least get a lot of selling fresh out of the way without it being destructive that is maintained the uptrend stay away from 6375 675 if touched what did we say about it no bullets reason to return to 6375 the markets on defense if it’s ever touched again guess what else to be Revisited ever again we’ve covered this 2543 6375 or touching 6375 wood for all intents and purposes put 43 into play no reason to touch 6375 that essentially identifies just structurally the last relative low and the last relatively describe happens to have / 43 basically if 6375 probably would be but once you get to 6363 7543and each test is already been productive doesn’t require another bounce number of downside of ject is essentially done that to attack 2500 just in the context of a temporary correction so if a correction is done ahead of the seasonal bullishness that is the non-traditional or coming to be more traditional at least sideways ranging it’s going to have to be from a higher level to avoid touching 6375 under 6375 we get very bearish burden of proof is on buyers they could have zorbit there’s still some lower prioritizing here 53 if that could be done in a in a timing window that is irrelevant like isolated to the overnight or narrow it nearly engagement during the open and recover it that’s one and probably the only way to to negotiate a break of 6375 without the air pocket but otherwise shallower than 6375 pull back which is difficult to see happening from within the range 6375 already been tested and retested and return to the high if it’s tested again it’s probably gone so probably need to get it done from a position of strength from closing above prioritize leave a gap up outstanding for instance that needs to be filled From Below take a lot of time getting it done that may be the boys scenario is to get get some Gap up outstanding question another pullback is also only if it avoids 6375 6375 is touched especially from prior to or without being hired in 1950 it’s probably done so if we have a high degree of confidence in 1950 being touched then right now we have to have a high degree of confidence if we have a high degree of confidence in 2590 50 being touched and if we have a high degree of confidence in 6375 touch being bearish then we have a high degree of confidence that while waiting for 2590 50/60 375 won’t be touched because touching 2563 75 makes 9050 unlikely and more difficult because that’s where the unlikely comes from so shallower than 6375 from here 20 points down for 10 points maybe 10 overshadowed by the reliability greater reliability 9050 before 6375 that have immediately conserved energy or fuel with pullbacks their different characteristics to the fullbacks is that a pattern for the market to get it in before the weekend and trench the rallyand then immediately start the week trapping shorts to help fuel a recovery into the weekend possibly so whenever we see something happentimes because the odds are always against that that is similar setups happens happening sequentially out of the resolutions are going to be very different or there’s a pattern so if there’s a pattern here then we would expect another immediate downdraft but it has has to be shallower so basically we start developing something like this that’s perfectly valid to use this as a guideline not necessarily predictive and back noticed that overnight here for instance is a touch and a touch that doesn’t completely pull back so it’s not a not an actual Rising wedge overnight things can get a little different but still for the purpose of support for to see that the pullbacks are getting shallower optimism is getting stronger and patience is growing that’s where accidents happen in Austin that pattern or that type of pattern will resolve by almost literally exploding higher capitulation not necessarily in shorts covering short short squeeze like stuff but I consider short squeezes to happen down here on pullbacks at the end of so else but more so money on the sidelines just coming in barreling in because it reaches a Breaking Point and then we’re all out of buyers but it doesn’t have to be very substantial to almost literally explode higher and it doesn’t have to be maintained through a closed just not the extreme explosion just to get that out of the way let’s look at other markets please go ahead and start posting them or any other questions and q’s came back with a vengeance after being a big underperformer while the Dow slowing its Pace but still higher can’t call that diversion Sia and a control group vs speaking hire as well so pretty much all three or another reason why I wouldn’t expect either or would be happy to buy an immediate full-back and as we know from our calculations would want to buy that pullback shallow as opposed to Deep alright there’s another sucks I want to update let’s do and if you ever Quest go and post them Tesla’s on my list to let’s start with that so Tesla has had an opportunity to Rally for some time requirement there’s some resistance up here that was saved by uptrending support pivotal of trending support very sloppy when it finally returned back to the high 389 61barely above the only thing that was required wascalculability there is higher potential is structurally the rally or recovery could be maintained structurally it was not maintained and started chipping away at support in 343 area that was that was that was absorbed for at least a corrective bounce in fact I had a and still have this is the same but this is the same calculable resistance 358 it had originally required a retest of the eye pretty decent holding his resistance but it was it was touching up or pierced enough to question or suspect the original break until 3:43 but reiterating the 3:43 break has been very productive back down to the prior low and back down now this week the next to 9275 this is a bigger break than this this is a bigger break then stopping by but at the very first opportunity beginning a down trip not just immediate downtrend really had some thoughtfulness to it broke lower we’ve always had the same potential downside on a break and that is to 263 262 263 calculator I hate to put it out to pasture just because it’s finally breaking you read the news stories and you just really want to give sellers every benefit of the doubt the tax credit potentially going away model 3 Productions down or production is down orders being cancelled so here’s one of those that I was referring to that has already started showing signs of distribution and you can just imagine it doesn’t have to happen to the broad Flat Line while a handful of stocks like this are distributed the heck out of and if there’s family in the room distribution is then rotated into other other new Darlings up-and-coming Darlings prior to extending down then there’s potential to fill that neutralize its attraction before resuming the decline the thing is that would also indicate that the sustainability so would stop looking for just 263 but yeah there’s there’s always going to be the potential for that is this break lower by the way I don’t know if you seen those headlines or a Tesla crash on that on news that the tax credit was not part of the tax reform package that it was sending it was part of the package this isn’t really a crash so it’s not really a crash the week of September 18thyou’re getting bearish pessimistic so that’s an opportunity from a perspective for a bottom so Tesla wants you know it’s just one rumor away from no they decided to put the tax credit back in you know right away you see a headline like that look at what a headline like that did Wednesday evening is that in there Wednesday evening just a headline about the tax reform plank that was contradicted before the open so if they can do that to the index you bet that can happen to Tesla if somehow a river is flooded I’m not saying there will be when I don’t do it but that’s the point is this is an island like pattern and gapping up back above 3:15 only temporarily but that refueling suddenly gets past 3:20 past that Gap and actually were traces potentially the 343 so there is upside potential on the way down t r u p trupanion and I’ll do two from everyone and then Circle back around as they are outstanding and I’ve got a few to update as well apparently at or at least resistance I don’t know that we were identifying this ahead of time or just identified it that was a big resistance being met but it definitely was influential it held the lower quadrant of this running correction and then resume the rally to its next tired of jective at basically 3995 that the pattern it stops short pessimistically short the next hour of jective and then compensating for the delay it’s exploding higher yeah and it’s got the measurements makes sense exactly 3492 long as 2873 now holds support at 2873 so long as that holds the support on Monday to confirm 3489 n Play downtrend that’s just a huge pattern here complex ascending triangle basically complex because it develops away from the high which is often often productive of a substantial so looks like the downside is still intact it’s responsive to a lot of these pivotal points turning points so I can’t say it’s a straight shot down but at this point there’s potential for a balance to 219 to test 219the break of the 187 60 and the next large active around 160 is in play or confirm to still be in play Barclays so we’ve been tracking this pull-back that has potential down to 9:15 really anything into the 915 984 area 95 area but preferably 9:15 and now more so 9:15 because this dip under 985 that was responsive has failed so I really have to give it the benefit of the doubt that it’s not going to recover before testing 9:15 and unfortunately because there was an opportunity to cut short the pull back all the way to 9:15 all the way to lower prioritize that buyers did come in and try already and didn’t close above 1075 to circumvent the deeper pull back before recovering because they tried and clearly failed now. Only is 915 likely to be tested but less likely to hold that test so it’s perfectly valid in this pattern to identify downtrending resistance just to get a basically Channel like Channel like look someone supportive but mostly resistant so get out before 9:15 before testing it before breaking it closes under it break above its down training resistance will give that every benefit of the doubt especially after 9:15 is tested if it is closed 915 can be tested 5855 and still have potential to recover but once a 5852 is broken it’s presumed to be gone intuitive surgical just keeps getting higher what was that for the first time in years had its own robotic surgical technology approved by the FDA which intuitive had a nice big bounce and then the next week or two so just to be aware of that which by the way about 3:34 would be pretty attractive 3:30 for 3:35 be aware that if your intuitive the impact of might have to start touting that they’re able to eat into intuitive’s Market still standing throw stones at their credibility and volume is suspicious or at least leaves a lot to be desired here probing higher we can raise the signalsignal to 355 70 but meanwhile look for to potential hire Targets near term Resistance 3 92-70 probably on the way to 422 Plus any level to pull back it’s tough it’s tough to buy pullbacks or that strategy perfectly valid strategy especially when a stock is making new highs higher and higher highs because at the very least you can often rely on at least three testing that high which really mitigate the risk however it’s tough to employee that strategy or have confidence in that strategy when volume isn’t expanding into that hire High you know here’s a higher high on volume I would have liked to buy that pull back of course it’s a catch-22 because that kind of volume into the higher high off and just extensions you know here’s one higher high on volume there’s a pull back into lower prioritize so the point being that it’s a good strategy it’s a good idea and even if we do with complete certainty which we probably do know as much as possible and certainly as possible in stocks when it comes to stocks which is to say not at all because because because that guy is being made or created on Contracting volume it is more susceptible now to a deeper downdraft so because of that I’d want to buy a deeper pull back as opposed to a shower pull back at least and that gets us pretty much back down all the way almost to 3:55 so something in this range here’s some lower prioritize call 360-3363 presented itself invite be compelling at the time I truly want to look at it but it might be an order out there with a stop not too far below alright any others go ahead and post them update on Apple which is been a big pic for a short when they were announcing iPhone 8 which as we talked about at the time and we going to talk about again there tends to be peeking into their new products in fact identified the presentation went astray or I actually we had three actual cell signals or setups the objective and I think the really played out that iPhone 8 sales were going to be hindered by people waiting for iPhone 10 and that as soon as all the problems with iPhone 8 including a battery blowing up as they tend to do and apples the new ones Etc as soon as the market reflected those problems attention could be turn to and would be steered to the iPhone 10 and that’s really played out on that was just and then some so that the actual pullback could come from a position of strength absorbed and then the next the ultimate Target actually at 1 73617 375 is meth that’s met on expanding volume so we can’t look at that as a peek not yet not without some sort ofcomplexity up here since distribution I just want to point out that was the upside potential and once againallow a new product not announcement but actual release we have potential for Peak and fousey azzam so I don’t have a cell signal here I made just as I didn’t have a cell signal here you have to see complexity you have to see the distribution develop and then you can identify for instance the corrective limits and the pull back the same thing here even if we do with complete certainty that this is the high is the predictability of that set up that we’ve been tracking I’m going to favorite pic in the basically in the Cannabis sector because it’s one that suddenly came on the scene of the reverse split as being available to institutions that are otherwise prohibited from entering stocks under $5 medical sector that grape pattern this is back when we started getting excited about it so it’s doubled from there I don’t see volume expanding and that’s been my big issue now volume isn’t really expanding is maybe getting sporadically heavier but not enough I’ve got to be concerned with that so just looking for a spot to start paying back that’s about the 29 area I think it makes sense until they unless they implode on bad study makes sense to maintain exposure to some degree but as far as that big ride or any of the Princeton’s pullback having held other inflection point recovered when volume isn’t coming along with the story there’s a couple weeks ago there was even a pre-open surge and then and then the broader Market had a problem that was ahead of the 19th yeah the morning of the 19th October 19th when were having an issue Omar’s to October 1987 presentations coming the market responded pretty well to it expect to see some sort of retest of those extremes so this is the area I want to consider actually pretty reliable but Kathy Woodley were into that area cuz that was a pretty good looking until it wasn’t volume established tested volume but still in proximity to the Sun that’s a big supportpreviouslyI understand what’s behind this break but it did come from a position of strength not as much strength as having taken out the inflection point originally without having to refuel again but it has left the Gap outstanding another one now it’s a Line in the Sand says to me 10 and 5/8 1063 is basically maximum pull back in the context of a rally is going to recover its going to recover from here and not from any lower in other words that’s essentially the the assumption but if this isn’t enough to clean out sellers than buyers aren’t coming back sellers are going to be much more rewarded much better rewarded back under the interim low Big Town trip in other words so this is just a temporary correction this is the deepest that it should be able to get through this week maybe that’s still recovers anyway but essentially if 1063 doesn’t Define the lower end of this the low of this pull back then there’s substantially lower lows coming in the context of a bigger Trend reversal regardless of what unfinished business might be left at standing otherwise this is got to be the cheapest possible so that there won’t be another gap down in fact that there’s going to be another gap down this is a good spot for it to happen that’s what inflections are or can be but that’s pretty much the cheapest it should get the potential being that it’s going to resume the upside it’s really miss the opportunity for that can help but it’s done without it damagingokay so there is resistance right in here 210 pull back limit is 200 200 gives way it probably pulls back deeper to 175 to pull back on a 200 under 200 deeper pull back under way to 175 otherwise stay away from 200 or hold its test through a closed and next time of jective is 235 area what day is earnings if earnings are on Monday then it’s Friday’s close that matters and I can’t really say that sincerely a position of strength there is none like that yes not that it matters it didn’t even return to Wednesday’s High it is a new high closed but within the range and has only traced he arrived 220-870-5209 pretty big deal to get out of a extend the rally at all but whatever to look at it the day before and I’ll be able to tell you whether it’s reading it from a position of strength if it’s not Monday alright one more to update we had to injectors on this this wasn’t my idea but when it was presented it was the best-looking we had that way with two upside objectives 5876 and 6456 both have been influential by the way but the story of that pattern is done and now needs to be renewed by closing of 6363 and rally is extending but just to point out that that leg is done unfortunately when you don’t have gas in the tank left behind huge consolidation reaction down all the way at least it’s done for a long time for a long time you looking for mid forties at that point Thursday afternoon the post close reaction to earnings that’s a substantial the intro reaction relatively speakingthat’s not a lot and so I would consider selling that 57 3558 for retest of the initial reactions low which was 51 and potentially probably a much bigger top for me that is it for me I hope I got everything and let me know if not jump it here during the week if anything you’re in is needing update be well thanks for being here on a Saturday morning we will be open tomorrow evening at the Globex open if I don’t see that I’ll see you Monday morning have a great weekend everyone take care

The one ongoing criticism of distributive price action of the past two weeks has been that it failed to probe a relevant low during a relevant window. In other words, sellers never gained traction for their efforts, leaving the pattern vulnerable to higher highs. Even Thursday’s plunge, which tested relevant lows, held relevant lows. None of which means a new durable rally leg is underway. There’s potential to higher targets, and near-term paths temporarily higher or immediately lower. More important is the sudden relative performance shift among the three major indexes.

Meanwhile, the quarterly earnings onslaught is on, walls of worry are being climbed, ECB is days away and a Fed Chair pick may be known by then. In this weekend’s Saturday Review, I describe those influences and more, detailing the three likeliest paths for next week, and specifying relevant price levels…

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The following stocks were reviewed in this order:
T, MCD, MMM, GM, CAT, V, BA, AMGN, GILD, BIIB, AMZN, MSFT, GOOGL, INTC, ALGN, GE, PYPL, ISRG, TRXC, ARNA. ULTA, AMD, STK

transcript:
all right welcome it is Saturday it’s time for the Saturday review it is October 21 is it is the week of the anniversary of the 1987 Black Monday crash course this wasn’t a Monday on October 19th it was a Thursday but it was an anniversary so everybody celebrated with a brief crash and then went right back about their business there it is actually was overnight there was the Omar’s to October nineteen 1987 could they have swallowed that any faster we knew they were going to swallow it because they’re then unfinished business left outstanding from the prior session couple pieces actually neither was satisfied the following day or in the recovery of the crash not until the next day yesterday or overnight and even then by supplanting it with new unfinished business Above So essentially it’s back up to an even bigger picture this is your market so got a couple things to come back and update and put the bed we want to examine why we’re here in examining why were here understanding what phase or stage were in and how specific behaviors associated with that stage might affect our intraday decisions cuz that’s really why we’re doing this or what matters to us even if we’re looking for one resolution for the broader Market or another you want to get the day the intraday stuff right so it’s interesting this is the last substantial consolidation as far as backing and filling delaying that was part of a much larger range or dipping back into a much larger range of the summer summer doldrums it’s not just stay it’s not just a catchy phrase it’s not one of those generalities made of the market for no reason at all for some anecdote here or there really is based on reality that it’s difficult to get sponsorship together we’re presumably out of that phase we’re almost out of October which by the way has another generality to it and that is associated with anecdotally some severe pull backs not typically durable crashes even the crash of 1987 it wasn’t a one-off it was a big drop and then it’s retest but then a big bottomlater we tested but held a concept that we dealt with quite a bit over the last couple weekscall backs that were holding so on a longer-term basis or larger basis but students on a larger basis we could see test and retest to Prior Lowe’s months apart more typically weeks apart but in any case we test that hold and solidify a bottom we’ve talked about this or looked at this setup of the last couple of weeks I had the opportunity at least 2 maybe 3 times when was borderline to identify that similarly sellers were trying to reverse things down and didn’t get things reversed down so we had this huge. For a week distribution this is distribution it doesn’t speak to the distribution which direction does the distributor phase resolved because we don’t know if we’re Distributing from Weekends too strong hands or from strong hands two weekends don’t make any judgment yet but the point is this was distributed price action there’s a high collapses there’s a high at the open collapses at the open collapses at Septra distributor that’s not trending in other words I don’t look at this as a trend I have a training support that will look at on another charge of the same index in a moment but it’s not a trend this is just a finding the range or defining the bias of the ranging is still overlapping they’re still distribution doesn’t speak to the direction of the resolution but as far as prior lives being tested here for instance one more time if you haven’t seen it in any of the videos or been there live for dealing with it here it is one more time this was the employment situation report Reaction 2 weeks ago which we knew going into had room to test 2543 without even beginning to reverse the trend down and it held through every relevant timing window and held the retest on Monday and what’s the direct and essentially almost immediate resolution to that Gap up here’s one that’s intraday testing a support three testing it through the clothes and in any case whatever they calculable sport may be here is the establishment of a low that’s retested through another time and window and held through its close almost immediately resolving up aggressively gapping up the other one that was not so successful and there was a reason that we were discussing in real time that was not that it would be suspicious about being successful was on Wednesday this is Wednesday’s low after it collapsed but a gap up to new highs template where we’d already established as a Monday’s close at this pattern was resolving and we anticipated it if there were a gap up to new highs that its collapse would likely hold would likely hold lower prioritize or at the worst moment in to the range but you didn’t get stopped watch this optimistically short but this low and it’s retest different than the other Lowe’s and the retest that I point it out because this only touch the prior low that because it didn’t really the difference the difference is that these were in the same time it was the same sponsorship it was just noise it wasn’t doing anything doing anything that they hadn’t already done in the same window those same sellersso wasn’t quite the reason it didn’t give us anything more thanthat accept that door open that we were looking not anticipating would happen or answer I expected would happen but anticipating could happen and that was Thursday’s proxy of gapping down and overnight in fact trending down sharply over the plunge happened overnight as I pointed out previously and maybe you were call anyway so there’s a setup that we won’t be aware of because that comes back even it up Trends in Reverse so we’ll be following this as that pattern has resolved. Because here’s that Wednesday again the two morning test and retest here’s that overnight Plunge brief visit maybe it finally gave the opportunity to this entire distributive range Friday employment situation report 2 weeks ago still optimistic that was 25 4150 it was actually a test as we know 2543 you and I know that because that was my calculation nobody else knows that we assume but but subconsciously that’s what the market was testing that’s all Market participants were testing it held that’s not quite a consequence of distribution is it just to be set back to go there’s no real punitive damage there in fact that help to promote the recovery so and the recovery by the way that was very quick not a lot of internalization of this a lot of damage before we’re tracing entirely back into Wednesday’s range or at least two Wednesdays Lowe’s lower or higher prior lives at that point and post close actually probing a little bit back to Thursdays 2558 5560 5950 other than Wednesday morning and nothing left other than optimistic fully testing that 2543 test can we see it the 2543 test that went down to 4150 on the day of the employment situation report only got to the relevant level that was being tested and retested least yet 4150 released its test before extending higher so all of this distributive price action Which is less evident on the overnight or when the overnights including cuz we don’t see the gaps down we don’t see the gaps up that collapse or the gaps down from the higher closes so we don’t see in this chart that this is distributive but we know that it’s distributive we know that the and we know from the resolution not the resolution up this is still part of that on going up trying to let me just real quickly go to that go to that chart that contains that uptrending pivotal support that defines that that distributed face doesn’t matter that’s what matters is the price action at the highs how is that resolved I didn’t the whole point here being this distribution be that strong hands two weekends or weekends too strong hands entirely possible and an uptrendit hasn’t had any punitive damage and it didn’t really have a reset your sort of a reset just to 2543term stopping optimistically short still capable entirely capable in fact we had a bicycle and through the afternoon more more confidence and being able to recover if not the same session at least near-term Wednesday’s eyes that wasn’t an issue but for the ongoing issue of whether or not there still is some punitive damage damages to be awarded for all of this distribution that’s still on the table these are we can obviously strong enough to push prices higher but doesn’t mean they’re not small hands they’re big money but they may be guided by something more fleeting or more temporary than an ongoing investment to underlying investment opinion for instance expiration that’s literally locking the market participants those that are participating in that locking them into taking action jittering their portfolio one way or the other up to the last minute perhaps but that’s not strong hands strong hands that have freedom and liberty to make their own decisions based on their investment opinion weekends are bounded to some specific action or reaction so there’s still some price to pay which means that the context of the rally that came since then the context of the resolution to the upside is that its weak and its sponsorship week and it in terms of their impatience they can’t afford a pulled back a pull back in his leg cannot tolerate dissent. I sent or decent that doesn’t mean that it’s about to collapse it does mean that when it’s done it likely collapses so we’re not looking at this as being any stronger of a sponsorship or capable of doing anything more on a durable basis and we do anticipate coming back to retest 2543 it’s 4150 test and more importantly since there was an opportunity here after having broken out to come back and more thoroughly test actually hold a test of aloe to establish that sellers were we candid to absorb the last of them since there was that opportunity and it was missed we expect that if we ever do ever do see 2543 again that it’ll be on the way to lower prioritize until then until we see 2543 again until we see a break that indicated back down to at least the lower prioritize which at this point is 24 which is always 2556 in this range and the lower end of that being 2552 a break under 25 50 would no longer just Target 2543 or retested 2541 running low and here it’s Target once we break under to if we break under 2556 we’re headed to a complete retracement or at least a corrective retracement of this leg which is 2510 probably inclusive of lower prioritizing here not much lower 2505 25 almost 2500 that would be the first objective of any clothes under 2556so is that coming soon and how soon and not necessarily soon we had a couple of developments on Friday first of all its expirationand the opportunity to the opportunity toput the brakes on the rally was not Wednesday but Thursday Wednesday triggered bullish wed x subject to the proxy as always with any wed x signal subject to the proxy and Thursdays open literally the open the point being that have any proxy there can be some influences that are overwhelmed on a given day but they can’t be overwhelmed be on the following open if they’re relevant to this case gapping down Thursday just a little was necessary to Gap Town a lot of gapping down under at the level that Thursday or Wednesday had recovered in order to trigger a bullish FedEx 5775 to 7:25 by proxy inverted the bullet with extra active or passive and it doesn’t matter what matters is only the proxy versus the WebEx signal so that’s a passive Friday afternoon Friday afternoon and then Monday morning Thursday Thursday which by the way was done before the morning it’s been straight up a lot of buying pressure expended when we got into yesterday afternoon when we got into it was enter to 2571 lapsed into the final hour 2571 the session in fact close the cash station close equated to it was essentially overlapping 27th 2571 the last bar low of 2570 high of 70 to 75 that’s the bar right here when it was relevant by the time we came to within three minutes of the Kitchen close even then we are trading 2570 under 2571 where they enter the slightest of slopes but not bullish bearish not actively barishpassive so for the part that is still an indication or an indicator the part of the signal that still gives us an indication as to how it’s going to resolve the wet ex was passively Barrett’s it fulfilled its signal its signal that was adjusted by proxy inverted from an actively bullish text to a passive qualified why is that important because Monday morning is the rest of the effect or influence of the various wed x and if it was influential Friday afternoon we anticipate that it will be influential Monday morning it is not as far as it is not the most relevant meeting that doesn’t come with a with what we would expect for a bearish wed x resolving down if the open if Monday’s open isn’t resolving down it doesn’t matter if the gaps caps down opens flat if Monday’s opening that influence is very uninfluential the rest of the morning not likely to respond or behaviornot enough to consider that if not being influential that the markets going to behave in the opposite direction webut yes more so if Monday’s opening action is behaving very strangely is trending down or the very least is not trending up then we do expect Monday morning to Trend down from whatever level and because Friday afternoon behaved very slowly it doesn’t matter there was the slightest of slopes because it behaved very slowly we expected to be more obvious in any case on Monday morning so Monday morning we’re going to be looking at the open and if it has not rallied spend it up or maintained a gap up when Gap up and Trend down from the Gap up and still be above Friday’s range and qualify as trending down through the open and trimmed down deeper for the morning what’s important is just at the open is not trending up not doing the opposite of bearish and they won’t just pay for the balance of the morning Monday morning Trends down that’s the bearish wed x influence and that’s what is left of it going into Monday and Y as of Wednesday as of Monday leaving the bias environment morning spice environment behind 11:30 and 2 noon that’s it for the wedding will have no further say on anything until the next Tex Trailers so that’ll leave us with the market that has broken higher closes on Fridays as we talked about often during trending extreme closes that is on a Friday just don’t tend to be the trends extreme close. Just tried to treat Trends extreme close I typically put expiration inside typically we just done with all the information it’s out there and opinion get that much pressure considered enough to force close unless the market is capable of producing at least another Trend High clothes so if Monday is open where to probe higher and then reversed down for the balance of the day or week or month that would leave outstanding the requirement for another week at least have the contacts or know the context of the reaction down being only temporary wooden stall live at the degree to which town in the interim before returning to that to produce that new trend I close at least confirm that it was only temporary more often that I close is produced within a handful of days if not immediately influential we know that’s going to be made more difficult for Monday to produce but it’s also a feature or characteristic to expiration expiration themselves trending reached a crescendo at expiration the exceptions of all this is not that so if Monday morning to 2556 2556 exit 256 without breaking it there’s that much roomwithout reversing the trend down there3556 presumably Monday morning if it’s tested without reversing the trend down Pro bit but exit the bias environment 11:30 to noon back about 2556 and will regard that as we would have regarded the test for instance 2 weeks ago unemployment situation report day of 2543 being retested the next day Tuesday interim intraday test last Thursday that resolved up 2556 would have that same quality to it if it’s tested Monday morning handheld upon exiting the bias environment will look for a significant recovery if not the same day into the week a shallower pull back Monday morning that still doesn’t recover by Monday afternoon would be likely to recover into the week the rally could extend the next tired of jective is 2590 25 1991 that’s already in play by the way having closed above 25 6350 unless that’s rejected literally one day of closing above 6350 it’s not a break out above multi-session range but it is a break above a relevant level unless it’s rejected on Monday by closing back under 6350 which isn’t necessarily barish but doesn’t confirm the Breakout 2590 91 is in play and yes she can look ahead and see what happens about 25 1991 2618 if 2556 doesn’t hold we’ve already identified that would Target 225 just the replacement of the up leg down multi-session multi week we would assume reversal down but might seem like a bear Market but in reality the ultimate High we would expect this ongoing series of higher highs and higher lows to be maintained and for the recovery from there probably several weeks later to to take off but if his rally where to extend without delay already that is without Monday mornings 2563 50s recovery object of his 25 1991 2563 e 5350 have it or not tested 2556 but closing back under 6350 and then spend the week backing and filling this is the final scenario that will be discussing now remember all these Lowe’s testing a low and holding the load testing the low holding it and then recovering if in fact influenced by the FedEx with or without having tested it to be shallower I don’t think it could be very shallow but in any case getting that out of the way whether it’s immediately or preferably immediately but in a different time and retesting Friday’s HighMatt test through whatever timing window it’s tested that would be the inverse of the low and lows retest that we’ve been talking about otherwise so no confirmation to the close by a second consecutive close above 6350 would leave a retest of Friday’s High vulnerable to making a major Peak what happens in the case of a major Peak the likelihood is and it can be circumvented as the likelihood of a reversal down having lower targets that aren’t met before being circumvented the likelihood of holding a retest to Friday’s hi later in the week from a position of weakness that is not having close the second consecutive day about 6350 the likelihood would be that this whole rally above 2543 or I’ll try from Thursday’s load testing 2543 that that Beaver traced that having stopped optimistically short of a complete retest of the prior low resuming the decline or extending the decline those are the likely going forward question on Friday it would be that much likelier that we’d decline that much more aggressively on Monday but you’re saying Friday as in Friday as a whole but if you were referring to the afternoon by its environment had Friday been greeted or at the decks been actively barish then Friday’s by Friday afternoons by its environment should have behaved actively bearishly to not passively bearishly but should have rather than probing a high and lows and held under them but should have held or pro-gun as opposed to rejecting Pro X to confirm the activeWebEx that the rally would have been in less strong hands that is true but I don’t know this was so was this strong hands or sellersno this is still passive sellers selling industry passively which is effectively this gapping down from a higher clothes or collapsing from The Gap up but never maintaining a break under a member the criticism of sellers the only criticism. Which is a pretty important as a pretty important criticism they never made for a close under a prior low never exited window underfor the referencequicklyas I want to go through real quickly page through the number of stocks are coming this week we have a lot of things we’ve got lot of Biotech high-profile index components Biogen Amgen Julieta missing a couple we have on Thursday is this right we’ve got Amazon Google and Microsoft after the close I just glanced at that and they look like they were on Thursday is that correct question do we see a possibility of trending up even slightly until year-end I don’t know about until year-end is it possible for the year to and higher of course is it possible to just continue at a slight tilt higher I doubt it there are accessories in here that will need other bigger versions of what we saw Thursday longer-lasting than what we saw Thursday longer to recovery more basing after something like that but yeah I’m in this is there still a good 2 months there’s still a couple of of bullishly attendant holidays I speed up the word attendant tendencies yeah it’s definitely a needle thread reversing down actually dropping substantially and I’m not even anticipating entering a bear Market I’m just anticipating a significant retracement up Lakes just the natural the circle of life of a rally so that is possible we don’t have any signal that suggests otherwise at this point usually more substantial than eventually where the slightest movement wasn’t concerned when I was down there if the trend looks like it’s reversing back up then the slightest rise in interest rates can vary magnify magnify effect and right now there’s a question about who’s going to be guiding them through those decisions we don’t have not this week but the following week is this week Thursday and the questions being raised about the ECB what how much can continue by that seems to be the most recent controversial questions raised about them and that might be addressed or might get some jawboning by Mario draghi Thursday morning what else do we have we had North Korea hitting the road Catalonia at the same timeautonomy that’s a conflict with us but everything to do with International hegemonythat was of its look at it it was a direct response to the Senate approving the houses budget which is in the US which is a big step in the direction of tax reform or just the whole tax reform why is it able to get this big of a surprise as a surprise reaction this is not a sudden fulfillment of anticipated developments this is a surprise reaction well because it’s so part isn’t out there that there’s so much and partisan just among Republicans themselves there’s so much this missile of the ability to get anything done and hear something substantial gets done it’s going to surprise but alone different networks dismissing what Republicans can do I think Warren Buffett was out of a week or two ago being very dismissive tax reform and he may have to be right this reaction to the budget being approved by the Senate may not lead to tax reform ultimately but there’s still so much wall of worry about there quarter and we had window dressing portfolio window dressings supporting things into September we’ve got now coming out and then finally into expiration so there’s a lot of stuff here that the market just thrives on that isn’t actually North Korea launched a nuclear weapon that takes out the West Coast that there might be a downdraft then or the end of the end of the market all together something along that Spectrum but until then it’s just a wall of worry that continues to be climbed by the rally and what did zerohedge just say yesterday that this is the most overbought Market or down at least I think it was the most overbought as it has been in 62 years and what do we say about being over but generally that means pretty much all available strong hands are behind that meaning that reactions are temporarynotice anything speculativeagain there’s without the overnight and Qs have been nice enough to fill that Gap pretty quickly they certainly didn’t have the same recovery that the Dow and he has had on Thursday getting back to hide those Wednesday which Wednesday by the way in downtown DS were above prioritize not and Qs so we’ve seen some significant deterioration again on Wednesday which ended up throughout the day. Es didn’t end up throughout the day on Wednesday and yes which crashed overnight back into the range wow didn’t even touch the prior range there is a massive and dramatic and fairly recent sudden that is shift how to speculative and into blue chipand that doesn’t mean the direction of the market is changing it means look at for the next change because these are these are moves that are made bysongs buy those participants that have to be long the market and so they get to choose at least we’re there long Alright I want to go through stocks of course so let’s go ahead and start posting them if you could I was going to go through a few from they’re expected this week that or at least component members AT&T sitting at Lowe’s earnings due on Tuesday I believe Prix open that’s not exactly a position of strength McDonald’s of course I’m going on at air 3M GM so this is the end of the early part of the week big swings on forward-looking statements on a reaction on caterpillar superficial ThursdayAmazon that was this week and if you can get through itif you can greet its earnings from above it and that is basically from above ten ten ten eleven then there is this Gap up from July that’s above all prioritize more so I didn’t taxes and stocks but still would like to be requested intraday and meanwhile there’s room down almost 9:40 before reversing the trend down Microsoft ice uptrend and the reason why I text could be important the reaction to Tech earnings again referring the zero head let me get the see if I can get that chart but zerohedge has an interesting chart comparison sectors relative performance versus the S&P 500 compared to the all of the other sectors all the other sectors versus consumer discretionary versus financials versus Industrials energy certainly not been leading the way consumer discretionary weakening Financial have been doing well but versus all the other sectors necessarily they’re not a drag their about in line Consumer Staples lagging but notice the odd man out here information technology technology Tech and DX which we just saw from looking at the end Q’s is running into problems or anticipating a problem versus the Dallas specially this is what has been leading the S&P 500 and we have 3 big earnings this week and we have nq’s underperforming Google which sort of had a downdraft possible I’m going to just this we still have 963 cell signal 980 I would consider more of a pull back limit as in there’s that much room no unfinished business above I can’t say that this is being created from a position of strength most recent but just to return to the upper end of the Rings and then also scheduled on Thursday recently broken out it’s a very nice Bass it’s had its fair share that had its fair share of testing and holding there’s a higher level that breaks out not from a new hi this is the problemtime measurement but structurally where last week had a lower low that was attacked by 43 being attacked on Thursday it was attacked at least it was high and that’s why that instance where is this coming from down here is actually bullishthat I can’t speak to Thursday if Thursday if Wednesday is close is back under this structure back under a price then Thursdays areposition of strength which doesn’t mean that they need jerk reaction is that silly down but greeting Thursday’s earnings From Below of fire low could be a jerk back up and then would like to think so otherwise but that hasn’t happened so it if this is what the truck looks like on Wednesday Thursday mornings would be greeted from a position of strength allergen Align Technology and this had a nice we looked at this before and shoulders higher objective outstanding that we looked at it since then really liked it continue to like it does this have earnings coming out anytime soon what is a good level here October 26th post close that’s going to be tough for anything substantial to happen between now and this week’s earnings Wednesdays Thursdays pose clothes earnings but what would have to happen for this to be greeted from a position of weakness I mean seriously the last relative low is back here under 185 and selling pressure would have to have been expended in the interim that it would be suspicious that it’s so much more so could be so I would assume it’s going to be greeting earnings from a position of strength that doesn’t prevent their being a negative reaction down but would likely recover that that’s how I react to this 228 and the only thing that would make me concerned I was under 179 228okay i g e and PayPal and the others go ahead and post them so there’s the last time GE was at this level two years 2 months ago this is weekly bars so here’s the rally off the 2008 Lowe’sturn really green it’s correction from a position of strength I don’t see this holding a bigger chest while that are he did touch to weigh 224 yeah this is pretty much the Line in the Sand at 20 to 25 the closing back above 24 24 would be interested closing back above 24 24 would still have room just for corrective bounce up 220-590-2585 but this is an ongoing downtrend and that is previously tested support that was already productive and it’s coming from a position of weakness the shallowness and wasn’t very early but it was just in the interim for tracing the pre or post 2008 high that it’s probably just a correction number for GE on a break below and why not why would have been 23 so I’m going off of measurements measurements for Relevant level 23 maybe an extreme of one of their tests and so it serves as confirmation that if there’s a close under it than the test of whatever level that was testing is confirmed to a broken but it may be another words called noise around the relevant level so it’s irrelevant noise is irrelevant level itself just as confirmation that you have broken free from that relevant levels test but it’s not the predictive level another words PayPal and let me know if there’s a way is met I’m not going to speak to the Precision of it but it’s somewhere in the ballpark of 70 and unfortunately that thing for us when we got the 6965 I can’t really say that this stopped pessimistically short before gapping up Friday but it’s also possible I’d expiration you get good news and it gets exacerbated by expiration I don’t see anything one thing happening but it is a risk of happening and that is close back under 66 what are these lives in here yeah basically 6666 and change this would be a killerthat pull backhead held relevant support it resolved up anything that undermines having resolved up on that Gap fill in that uptrend from these levels anything that suggests that Friday is I can’t wait to see it all the way but a one-off kills that up like and it kills it may be to the extent of forcing of Correction this Friday possibly an exhaustive selling the stuff for GE exhausted but not necessarily terminal so it’s also but exhausting you would typically see in a series of lower limbsfrom here and close above 24 24 where they come in 24 2460 you got all this room the balance of to 2585 2580 that’s a fairly Fairly reliable leg right here if this happens then this happens but you still need to get through 25 whatever day that is 84 two little bit of resistance of your 26 2605 have to reverse an ongoing series of lower lower lower highs so exhausted is typically multi-session declines rights or not and that was a weird story this week what is that what was that that came out this week surgical device approved and the initial concern which has the lock on that market and then for some reasontrxc that was italright so there were a negative reaction to enter intuitive Surgical then it would have room down to 325 326 before threatening to reverse the trend down if there were negative reaction testing 325 326 holding it through that close then I’d be very interested in buying it for at least a retest of the high what is there they just had earnings did they just announced Thursday they did to 77 so volume not very exciting on the way up here on this last night definitely looks very expiration related so that’s really all I can say there isn’t any requirement to Trend any higher if this does extend iron there’s room at the 422 just as an ongoing feature to the measurements of the leg but as far as the path there if that’s even where it’s headed ultimately as far as the past there there’s no Assurance of that so long as he remains intact it start getting 422 under 344 with Target 344 326 and then have a very critical decision to make alright then this is the one that came out with a medical device at first too soon to be directly competitive to intuitive which if that’s a lot of capital raising to do but the question is whether they’re better off being bought two go head-to-head with intuitive and then they announced they weren’t necessarily competing directly with intuitive doesn’t sound logical but maybe that’s just try not to scare away investors and their secondary that they need to do in any case very interesting pattern very limited duration to that explosion which is unusual this issue has a problem with that five dollar rule that must adhere to they are allowed to they aren’t allowed to take positions are $5 stocksthey can hang on to a position they’re not forced to liquidate that’s frowned upon by their higher-ups I’m sure but distributed because nobody wants toit is difficult to recover 5 because institutions can’t get involved but if there’s a story here remember that was our story behind arnoult that this reverse split city of inside of a noted on here that this reverse split that took it over 5 from was it a dollar 12 from a dollar fifty a Believer dollar twenty suddenly made it attracted institutions or a vegetable the institutions that is Ulta and then I see two more any others go ahead and post them so I had a nice run this is an interesting pattern it’s a complex ascending triangle and get extended pretty aggressively complex because the Ascension is sending triangles resistance to Bob’s under and not with the prior HighV cover updated thisokay alright so I’m going to Klein cell signal is triggered how low can it go and there’s a good case for support here although it could only be temporary and it’s so far responding price action is responding to the 180 760 area but that may simply be a corrective bounce however this channel resolves is likely to be the next Direction what was the channels objective here and fill the gap having filled the gap having held its resistance through a day makes it that much more critical and that much more reliable the signal if that Gap Phil is that exceededso that turns out to be a continuation pattern this past week’s bounce then the next lower objective is 164 down to 155 otherwise if this past week form to bottom will know because you have to leave this channel aggressively have to search out of it just flirting a little bit higher and really not even recovering 219 would run into resistance there I are proud of those and then resume the decline so the more aggressive the resolution to this week’s uptrending channel that is almost literally explode higher Monday the more bullets had not even more difficult uptrending support where there was an inflection here at 13452 reacted down chipping away at its resistance really taking its time here nothing new to add to point out that it’s just not in any Rush I don’t see anything impressive and volume nothing that says this report is going to fail nothing there that prevents another Dip Top trending support because buyers are bringing it but they’re not getting anywhere for their effort really need to get out of these tests and ultimately get out of a 1466Seagatenot a very predictable stage to the to the extent that the decline is further delayed I don’t think price wants to just sit here this isn’t really a good range for price to just sit so either the decline reserves or it continues firming up into this 30 Oz that is 40 42 Target area other than assume I’m assuming that there’s 3535 was touched in which case now that it’s been touched back under 32 would resume the decline Les the decline resume its targeting 4042 predictive of patterns other than to point out that it probably doesn’t want to just sit still here and so it is resolving when where the other at least in the near-term resolve dad and we’ve got to lower prioritizing here that would be Coming Attraction under 25at the very least anything else to look at no ideas great questions great patience great curiosity like that correct thanks for taking some of your Saturday for this I hope it was worth while I dish will GE question that was Friday possibly at a loss substantial loss for anybody for the last 2 years or AAA Los pretty much this isn’t the kind of considered to be very vulnerable to tax tax laws selling pressures of a certainly is going to be a candidate for people’s portfolios that are making decisions based on tax consequences of the calendar year approaching to be able to realize those losses but couple things about that it’s not a substantial loss so I don’t see for instance what we would see on some of these marijuana stockseven one because it’s been looks like it’s been pretty sure if what we discussed as far as six but this is only a fairly recent downturn from this value area this range basically with a lower end of 2820 10% lower that’s just not a big differential that makes it subside a big candidate for a January because it had been affected affected by considerationamong its ownership so it’s it’s it’s a January Factor something you see more in 10 Stockton Ave y door swings or have had more on going to Clines bigger differentials between the range from the Hyatt self over there’s only one downtrend from the reason I from the last two your side so I wouldn’t consider this to be a big January for Canada but good question because we are going to start focusing on those in a couple weeks okay no Saturday review next weekend no Saturday review next week during the week that you want updates on bring them in here because don’t wait for Saturday he won’t be here the truth will be open tomorrow night at 6 Eastern for the glove box open if I don’t see you that I will see you Monday morning have a great weekend everyone thanks for being here take care

Another weekend greeted at new highs. But not a new trend extreme close. That’s a tactic employed by trends to entrench themselves, and to protect against immediate reversal. This rally still has its tactics:
— a little “unfinished business above,” which is better than nothing, and
— a couple of failed reversal attempts (with opposition like that, who needs sponsorship?)

The past week was spent ranging sideways. There’s some specific behavior and levels that would start to signal whether the rally is extending, or reversing — and how high or how low, respectively. We discuss that and more in this week’s bigger picture…

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The following stock requests were reviewed in this order:
AMD, QCOM, BCS, GS, SODA, NFLX, ARNA, MZOR, TSLA, JPM

so this week has extended hire again another weekend being greeted at a new high will dissect that in a moment and the particular meanings of it and a shallow slope shallow slope and slope is bullish or at least is a rally any higher highs and higher lows constitutes an uptrend and that has been the Rally’s Saving Grace and all of its distribution at the upper end of a range is that there’s no lower end of the range giving away the upper end of the range is holding sort of remember that slope and the lower end of the range is holding even more so last week we had a couple of opportunities we have to include the primer Friday’s reaction to the employment situation report which remember going into Friday’s going into Thursday’s close we knew that Friday’s reaction down if there were one to the employment situation report had room to test 25 43 and not even threatened to reverse the trend down so we had a pretty bullish anticipation contextually bullish meaning that the not necessarily that price would continue Rising in fact that wasn’t the likeliest scenario pull back was and that a pullback though would be absorb and it was it held but now going to this past week the two attempts at support that were absorb Monday although gapping up immediately dipped to test Friday’s low which we knew was coming from a position of strength having held 2543 on Friday coming from a position of strength meaning that it was likely to be absorbed from whatever level so that is not necessarily accumulation but it is a reflection of we candid sellers and by the way that was an opportunity for sellers to take control even though we anticipated that they would hold at whatever level weather testing 2543 I think 4150 was the Roman level with that or getting down to 35 36 testing lower prioritize down here whatever the depth having held at the first opportunity to break lower the second one usually fails but had not had the less likely scenario I’ve actually closing under Friday’s low develop on Mondays test that would have left no unfinished business above because the Gap back to Thursday’s close have been filled at Monday’s Gap up so there is not only an attempt by sellers to reverse momentum down but a pretty good opportunity and it failed and right away they’re rewarded buy gapping up all the way back to Thursday and Monday size surging but then once again which we were on the lookout for because Monday well in fact coming into Monday session we were on the lookout for the risk of reversing down from the open at this is basically thin air extend this out and that paid off well because in fact of going into Monday Thursday which was tested and held Tuesday which Monday before reversing down which was another reason why we were suspicious of sellers being able to maintain a break lower but now the game is changed at this point 2552the reaction is solidifying that this is where I guess you can solidifybut still sellers are lacking and continue to lack that one basic elements of a trend reversal and that is closing under a relevant low still hasn’t happened Wednesday gets back up to the upper end of the range 2550 2553 and you don’t get the collapse like we did Post open on Tuesday or Post open on Wednesday after I post something on Monday Post open on Tuesday we don’t get the collapse cuz it develops so late in the day until Thursday gaps down so similar similar reaction to the same area that is distribution get back up there on Thursday you know the drill not necessarily A collapse but here’s another opportunity similar to the friday-monday setup this one being entirely intraday so the decisions are getting made on a shorter time frame and there is a low that arbitrary low basically Thursday morning that suddenly becomes not arbitrary because it’s reaction up does something of relevance and that is fills the Gap back to Wednesdays close had that bounce been any shower then a fresh low would have just been part of a Down trip lower lows lower highs instead having returned to the origin basically fill in that Gap Thursday afternoons fresh low was a retest let me know if you don’t understand the difference retest of the mornings low how to get we are anticipating we are just made that up there were lower clothes and if it were soon enough before they close itself that it could have detrimental effects leading into Friday leading into Friday’s big two or three economic reports consumer sentiment and CPI most prominent but it held and having held at the close let’s get rid of this stuff at the close we knew to expect a response yet developed entirely overnight as it happens show the overnight now so here’s that retest of Thursday morning’s low that holds through the clothes that Rob sellers of their traction that had the balance of the night at the night just backed and fill their fluctuated sideways even flat to hire would have greeted Fridays open with a lot of upside opportunity that could have attracted reinforcements and could have taken price significantly higher and I say that not to describe what could happen so much as what the market decided not to let happen What overly optimistic overnight trending prevented from happening optimism that you know tend to see at the beginning of Rally’s not that this optimism couldn’t have still attracted reinforcements with the fact that it didn’t suggest this isn’t the break out from that range 2550 2553 this wasn’t a break out from the upper end of the range and in fact the session just range sideways one more opportunity by buyers that was messed was the opportunity for a new trend High close on a Friday closes on Fridays don’t happen without there being a pretty much know terribly detrimental events on the horizon it just takes too much pressure and too little contrary pressure to allow that to happen on a Friday ahead of a two-day 2 days ago liquidity just one of those Friday factorsfrankly had the clothes bin within this range above 2083 325 350 but just above it but still within this range that had developed all day we would have taken it with a grain of salt we’ve been we would have been suspicious about that qualification as a new trend I close on a Friday but the market Works itself out and doesn’t allow that that doesn’t doesn’t prevent probing higher or extending higher weather at some future point or Monday immediately the only thing it does is takes off the table the potential something that wasn’t even on the table unless there had been a new trend I close on a Friday and that’s to have the reliability of recovery the reliability that if there’s an immediate down turn it is going to it would leave outstanding a new High clothes that’s not out there it’s possible for a new trend High clothes it’s possible that this is just the beginning but it’s not a requirement and it’s not a requirement that a rally often does for self-preservation and this one had the opportunity and didn’t and as you know from a lot of other set up setups that have a bullish or bearish consequence setup said have multiple elements to them set up Center fully-formed except for that one last feature so for instance this setup of a new trend I close on a Friday that could have fully formed by closing above prioritize and at that last element failed setups that could be bullish in this case and failed to fully form tend to be as boorish as they could have been bullish and vice versa elements that are lacking or a final element that’s lacking from a bearish setup like just to give you two recent instances that we’ve already discussed like this this probe under the mornings low this probe under the priority is low had those been maintained through the clothes would have been bearish instead they were as boorish as they would have been bearish little more so by gapping or extending and expecting too much selling pressure to be maintained intraday scaring away reinforcements instead of enticing them but the same point can apply here and we’ll see if it applies here pretty quickly because on Friday if the rally hasn’t yet extended to a new High clothes will take that as meaning that this leg is done that what we’ve been looking at in the 2553 Range Rover week as being distribution not just distributive because look there’s the upper end of the range and it’s holding but distributive because of the character of how the upper end of the range is tested and held the character of the abrupt abrupt reactions down gapping down I’ll be around news collapsing collapsing gapping down even Friday having had the opportunity at least 2553the ongoing opportunity to extend hire again not exploited and except for Friday not rejected in a noticeable way that’s distribution we’ll know soon enough whether that’s distribution from week handed buyers to Stronger handed buyers typically not but that’s possible or if this has been stronger headed buyers Distributing more patient buyers becoming more patient sellers just looking at the bigger picture so here’s last week There’s Friday’s employment situation report and then the balance of the week basically still gyrating fluctuating around the prior week’s High not quite the slope two-plus weeks that led into it that shouldn’t be predictive wasn’t quite it wasn’t exactly upward slope the week before and that managed to recover that’s not the deciding factor in other words that this week this past week was shallow or even downsloping what’s more important is the behavior at the highs we didn’t get those kinds of reactions at that last consolidation for example that last consolidation came back test one more time show that sellers don’t have it and extend higher there have been a couple of opportunities in the past week for sellers to show their stuff and they failed the certainly understandable extending a little bit higher into the weekend the comparing this to other markets or other indexes the Dow a little more pronounced in its upward movement little more upsloping it did not go out or spend the week even fluctuating around last Friday’s High but last Thursday so I sorry so once again we’re back to little a performance in the blue-chip safer shares which matters if the speculative traction the primary gauge of institutional or producer in money that is seeking out more risk metric would be relevant if you were underperforming and they weren’t so there’s a little upward slope there so there’s no reason to be suspicious of the uptrend until es is on board if it’s lagging until it comes on board with the Dow and went with and Qs or if there’s at least a couple of consecutive sessions of that performance and we haven’t seen either this week for that starts out with a break lower what will be looking for is the reaction that what this indicator itself would speak to and it might not be very sensitive and immediate what it would speak to is the reaction let’s say we start the week with an immediate dip how did that react how did these three react which would have performed which one underperformed but it doesn’t undermine if the beginning of a warning shot across the bowstarting the weekshould be entirely credible but that’s not an endorsement for the outside by this indicator upside potential if the rally does resume I’ve got the wrong screen bear with me one momentokay alright so we’re right now dealing with unfinished business above that is from Wednesday morning Sarah it was a Wednesday morning that held its bias down signal is that a Wednesday morning at l-2449 or it was from Wednesday afternoon either case there’s a test of 2557 as a bias objective that’s outstanding we also have new unfinished business at 2556 75 so essentially the same thing be a new high 2057 we can come within four ticks of it we can come up there and Fort 656 75 but not with 57 still outstanding and satisfy it in other words at 56 at 2556 the attraction above for the requirement for satisfying that attraction above would be neutralized 5757 probed like to see it set up that probes 57 by to whatever degree multiple text multiple points so long as it’s the same leg and that leg never becomes komplex and Trends higher so long as 2557 is tested that’s going to neutralize any upside attraction and considering the delay and now the compounding of attractions above in that same area usually that does get probed so in other words it wouldn’t be surprising if 2557 by 2 points there’s even room up to 6350 but that doesn’t take away from the last week being distributive at least in the 5053 area and that the probe of it or attempt to probe away from it may be more substantial than these gaps up to 50 Gap up to 53532 gaps down maybe actually 57 or 59 even 6350 maybe that’s trying to get far removed from the Corpus of this consolidation is distributive consolidation if it is distributive but that’s irrelevant compared to so long as whatever time it would do contains that probe either Peaks at that level or upon exiting to buy some element has peaked or preferably exits back under a relevant flow it’s still part of this magnetic attraction to the congestion overlap that is created mass that is created its own orbit and still vulnerable to the same form again maybe to a different degree but the same character that has been describing or defining attempts to fluctuate a range around or get out of the range above 2550 E 53 2557 5859 get out of bed 2557 through the clothes and the same session or the next also above 6350 and if this distributive rangewill assume was weaker handed Long’s Distributing the stronger handed buyerstaking it to the next level at 2591 2590 5025 91 that’s a significant pay off to the rally if it can just get out of this next tire band of resistance otherwise hold resistance failed to put in a play any higher objectives and it’s not so simple to just reverse the trend down to put into play lower and lower targets but having chipped away at support twice without being rewarded by closing be on the Range just closing back under this range and really at this point again we want to see 2557 so I’m going to assume 2557 is part of the next year and making the measurements should be 29 I was off a little bit 2529 would be the minimum objective it’s really rude for noise originally room for noise around or under 25 35 36 so I could see it happening in a couple of stages that could still qualify as a pull back working out the excesses that the distributive price action at 50 and 53 has been reviewing then again I’d like this to happen I mean I assume that this would happen after satisfying 57 this could develop into something more substantial to the downside this pattern would be likely to be tested From Below just as it’s going to be difficult getting away from it to the upside similarly difficult to get away from to the downside so it depends on how big of a bounce this might be weather getting down to 29 would need to recover still that’s red two ways if there’s a corrective bounce that gets officially back into the range depending on how deep does test 25 35 36 to satisfy 2529 at this point there’s no reason for a correction back into this rain so if this drop back into this rain it’s this would have been this would be done but if this were a shallow bounce which actually have to find here doesn’t get back up in the last Tire Pryor Lowe’s and then resolves down still want to get a corrective bounce back into the range that would still be more vulnerable to resolving now so it depends on these points in a downtrend and to what degree 2557 tested first or not 25 35 36 producer reaction or not does it produce reaction or just extend down and 29 which we didn’t even discuss the reaction from 25 35 36 how high to shallow back up to the last or take out even Thursday that would be a determining Factor was finishing a correction that was likely to resolve up or whether this was just the first down legcorrection prior to another day another year they will be keeping you aware of in the event of a Downhow to turn that may or may not be preceded by first testing 2557 none of which would be relevant or at least all of which would go to the back burner if 57 were taken out and 6350 were taken out on a closing basis then our only focus is extending the 2590 5091 so Sunday night up or down Monday morning I test 2557 will be looking at hard for a similar reaction not too close up there and get them the next day but react down intraday then it could be a mid-day test that collapses into the afternoon I don’t think so I think it’s a morning thing will be looking for a new blow back strain extreme over at night that’s going that would tend to undermine a reversal unless it’s retested pretty quickly answered a Monday is open could gap down recover intraday that could push that read that fresh hi to the afternoon close lower there’s a pivot reversal so number of different set-ups here that would resolve bearishly none of which would be focal point on closing about 57 let alone above 6350 alright I feel like we do have interesting because the idea of one move and then reversal because quarterly earnings that is Ted’s to behave one way the first week that’s built in if even the following week’s worth of earnings don’t surprise price is already there alright if there are any questions about the bigger picture or the specifics of it let’s move on to stocks individual stocks I’ll do to the first two stocks any requests and then Circle back around there’s a couple that I want to add in there as well or something that I think we should update from previous requests so here’s a MD in that ongoing uptrend or you can see the uptrending support this had been a bicycle back here in August that reacted instead of proving it another one was calculated up here that wasn’t exceeded until actually this one bar for this one move on is that for weeks ago 3 weeks ago so started shipping resistance the question now since it up through it the question now is whether that is actually break or whether that is just noise but it’s some point you give buyers of benefit of the doubt that is because they’ve continued returning the market too optimistic levelsevery now and then you have topay them off but only with no eyes sword out of that range yet that presumably because of the up training support presumably because of the chipping away at resistance we do want to see some high resolution be presumably because of the attraction outstanding back to this Gap up above all prioritize from July at 15:13 higher Highs but we need to see those volume what we’re not yet seeing we’re seeing some volume surges but consistently expanding volume here on the daily chart it’s a little more obvious now that is being tested now it’ll become very relevant whether or not price volume expanse on Fresh eyes so very important that’s a risk we’re going to come back and not the same pattern of concern lot of support down here at 51 that’s why breaking be on either end of that range would be it would have been it still would be likely to Extended that direction so he was a little corrective dipokay interesting Behavior cell signal laterally to still be relevant or a kid even be raised do wood measurement we can actually raise it so now 5150 55 now that’s irrelevant cell signal there’s that much room that much room for selling pressure same thing though still applies not just a test of not just screeching to a halt coming up over the curb but actually breaking a 54 54 25 that’s irrelevant bicycle imagine are going up to hear from for last week 7 weeks 6 or 7 weeks but for the ongoing series of lower and lower highs this bounce into September did not produce a higher high there’s only been one that’s in October it has yet to be confirmed with a subsequent iri prior to producing a new low so this pattern back on track for if it’s not recovering the recovery would be pretty questionable without itBarclays Barclays looks like it’s on its waydown to 9:10 so long as 1085 isn’t recovered the big decision point would be at 9:10 until either one of those breaks there’s really nothing else if not I’d Ted is tested that I buy signal would be triggered back above 985 I would love to the bicycle to 985  Goldman there’s a lot of resistance here up to 246 they can basically see this inverted Head and Shoulders or pivot reversal pattern which is created actually it’s off of closesso you can see this this bottoming pattern in other words breaks out looking at volume surge confirms it gets to its highest objective 248 – 4793 and it proves it and the probe itself a company by very low volume relatively low volume Heroes volume throughout the formation of that pattern which is a head and shoulders and then are the brake volume surges of course so now we’ve returned back to the neckline of that head and shoulders it is natural resistance it’s going to be a big deal to the upside at not necessarily in terms of degree but in terms of reliable extension higher get through that neckline what was the first tested at neckline where did it Peak 2240 7:08 get out of up to 4708 we don’t even need to see that Pryor High the prior schema Fibonacci scheme to to 4793 we don’t even need to see that it would but get out of of to 4708 through a closed volume expanding and we have a very high degree of likelihood of extending higher in a very short term I want to see the actual pattern that was breaking hire at the time to give that some to sign some sort of price to it but I imagine it would be 273 not a huge move relatively speaking so much as being in a very short time frame and direct to 4708 otherwisepotentially a short so when strategy shortstop in reverse the log on to 4708 especially if on volume as far as it being a short there is a lot of support down here at the 2:30 area but this is just a corrective leg if it doesn’t find reinforcements soon and if it’s just to correct of leg that it’s on its way back down to 172 171SodaStream really took its time getting going back to June 2013yeah and there is a couple of different set-ups or patterns that extrapolate out to 6586 that’s been an ongoing Target that’s meth and not only is it met it’s vet and responded to it’s definitely influential so whatever the high of this test of that Target is 6775 a high volume close above 6775 is needed to resume the rally to extend its objective it’s next Target would be do high structurally just to continue or Tracy complete replacement of this high from 77 four years ago calculator but it could be substantially higher 240 which had been an influence before reversing the trend down but a lot of upside Netflix optimistic or at least objective which would have filled this Gap from July at least a high of that structure the relative HighSavannah Target if not veto it was a bit of a Target was the 186-187 area 186 188 there’s a minimum balance on the way up services support influential so we’re looking at the right pattern it’s behaving as if the pullback had been complete we know it stopped optimistically short not substantially not overly optimistic Alia Bhatt optimistically short didn’t leave unfinished business below but certainly would have been more reliable to have dipped a little deeper first but try to extend her anyway volume not so bad definitely expanded and expanded aggressively coming through these prioritize so my question now is is this a pattern that is extending and extending means that that it’s continuing to take higher but that it is going to take a Target and essentially double and triple it for a leg that is what’s the one more measurement hereso all the bars are doing right now is overlapping this 195 * 194 195 volume is looking good so we can anticipate or at least the burden of proof is on sellers that they’re going to retake control because buyers are bringing it there they’re bringing in reinforcements if that’s relevant level volume can go up from sellers but then they’d have an impact and they’re not so if this pattern is extendingis 218-219 to Target or 2:35 I would look for to 1875Little River noise up here but so long as 194 or 9425 so long as one 9425 holds the support there will likely targeting to 1875 set a bad risk reward and there’s no accounting for gaps down I love you insert a couple here of update sarna I see just a couple of more request it was productive I like this after that initial breakout try it was productive what’s not to like about the surge hasn’t done anything since that but correct it be held its correction and has recovered but what’s going on a daily so what I really sing volume expand despite price recover and that got to be a problem last week and the week on a down note that is a fresh loaf for the week basically even testing the prior week’s lives so a little bit concerned with that with these drug companies you know it just takes about results from something we saw GW Pharmaceuticals didn’t even take negative announcement to a competitor that can certainly have an impactMZOR so that’s just a little that was a request keyboard favorable reactionso mcor robotics mazor robotics was a request previously and this was one of the most attractive charts if not the most attractive chart of the day of that week that we looked at it it was for me and ascending triangle it had room for a pullback it was never utilized and as broken higher on volume now come back to test lower prioritize on Contracting volume this continues to be attacked and tried getting 5875 request for Tesla Tesla has this very sloppy history this is not at all new good for years it’s been an issue with me the pattern is just so sloppy it responds it responds to relevant levels it takes its time for filling patterns but it does come in with detours in both directions sew-in Tesla’s case we had a little topping activity up here on the way to potentially testing for 12 the reaction down basically tested what would be a cell signal had it broken decisively it was over that the couple days but never broken and could have extended down then came back up to a bicycle this is Kathy lovely the inflection point that’s being tested at 3:58 and that succeeded back to The Hideout this point for having held the test of support the prior low for having absorbed sellers there’s a reward that buyers get at some future point and that is to retrace the entirety of that way so structurally structurally just piercing it to the slightest degree even touching it specifically just touching structurally satisfies that upside that maybe a very but that upside buyers have been rewarded to the degree to the minimum degree at this point and a pattern as found resistance right back down to another cell signal at 3:40 to 3:40 190 similar to this cell signal at 314-3314 25 pierced overlapped a little bit but ultimately held Consolidated under is that still being tested is that still being tested the same way that for instance August by signal was still being tested Consolidated above come back and refuel before fulfilling so is this cell signal still being tested consolidate under come back to that resistance refuel before fulfilling to the downside this is pretty much the 358/2 that’s a really difficult line to be short above or even not to be long about it But this is literally the Line in the Sand that isn’t it start with a history of overlapping my inflection points but for resolving the history of backing and filling a triggered signal before fulfilling it but if we assume that this is a triggered signal cell signal that it has back and filled it is about to fulfill it this is literallythe most opportunistic short entrymost advantageous because you would know that much more quickly that it was wrong so this isn’t just a business about making money on profitable trades but also close second if not more importantly losing as little as possible on bad traits so that’s where this sloppiness gets to be a problem how do we Define the stop I’d look at it there’s a number of different Tools in here we could use like you can see where this inflection begins oars drifting and then inflecting down more sharply that’s where the market suddenly decided now the directions down and happened to coincide with this consolidation so if we look at 360-6367 is a stop too short and tree at 3:56 that’s a 10 or $11 risk versus if this pattern is cell signal is playing out then its objective it’s been 14 here at 3 called 354 10.11 points 241 that doesn’t make it any clearer but it’s just an active approach and I’d even consider it if this were stopped at about 360-6267 closing about 369 getting long because a big bullet will it be judged is mortgagebut there’s a lot of room for a pull back here before it actually reverses the trend down or threatens to lauderale not that it can’t be begin the week with that room being taken care of that and I be 50 but there’s a lot of room in other words that an it 50 and didn’t even under 8888 17 before reversing the trend down otherwise the minimum objective here is 100 there’s a number of qualified objectives where pattern could peek 100 381-0975 such a overlapping pattern I can’t discern which one would be more attractive but they be gradually more and more attractive higher and higher so I’d be suspicious of any kind of a 45 but quickly get a hundred out of the way and then at that point if 100 is tested first suddenly there’s only room down to 9385 before indicating momentum reversing down any questions about any of the bigger picture if not Saturday review and don’t forget we have Saturday next week no Saturday review the following week you know I don’t do holiday weekends which is Halloween that’s not the reason but it would be so what April fools everyone thanks for being here thanks for taking some time out of your weekend I hope it’s a good weekend rest of the weekend chart room will be open tomorrow night for the Globex open will see you then thanks for being here take care