Out of the frying pan…

Out of the frying pan… into the fire?

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

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

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

Enjoy!