a little pullback never hurt nobody

spyDaily$SPY we finished the week mildly red, down 0.27% breaking our 3 in a row green weekly closing streak. We’ve had an incredible run higher for the entire month of February with only 5 red days out of the past 19, three of which were in the last three trading sessions, wednesday through friday. The breakout from our recent trading range above 208 is still firmly in tact, and the bears will need to break below minor support at 209 if they are to force a re-test of the major breakout level. Bottom line, we’re in an uptrend on the daily chart and in the midst of a multi-day pullback which has yet to cause any significant technical damage. Keep an eye on 209 going forward on the downside and if we do reverse higher, the all time highs above 212 is an obvious target. As far as my holdings, I continue to be long a few names that are holding strong and clearing resistance levels and I’ll have more details on that and new trading ideas for the week in a video out later today (3/1).

iwmDaily$IWM outperformed this week, closed green, and is still holding within this accelerated channel ever since breaking above multi-month resistance at 120. The small caps had something of a reversal day on Friday after pushing new all time highs and then closing on the lows 0.6% down. High level support is still very much in tact and heading into next week we’ll see if the bears can get some follow through below this rising trend line.

xlpDaily$XLP looking across sectors this week, consumer staples saw the most inflow as they finished up nearly 1% on the week and closed above some important resistance on the weekly chart (49.75). It may not be the most sexy sector to trade but it’s some of the most healthy price action out there.

xleDaily$XLE on the side of the fence, energy names led us lower closing just shy of 2% in the red for the week as this sector chops around in this 78 to 81 range. Certainly could be some of type of bottoming pattern the $XLE is trying to carve out here, but it certainly needs some more time before we get any confirmation to that theory. Below 78 could set up a retest of the lows at 73, meanwhile breaking above $81 is what the bulls need to fight for to contain this recent mess.

aaplDaily$AAPL finally seeing a bit of pause in the almighty Apple as price finished down 0.80% on the week. Apple continues to maintain it’s strong uptrend and a pullback like we’re seeing should be welcomed by the bulls after such a strong move to the upside. Apple could trade back all the way to 119 support and still be considered very healthy from a big picture perspective. Let this settle in and embrace some consolidation before aggressively placing positions in either direction. On watch.

twtrDaily$TWTR no surprise the $50 level is posing a bit of an issue in the near term for the bulls to clear above. The earnings gap from early February is still in tact and upper level support around 47 is an area the bulls will need to defend in order to keep this chart looking as healthy as possible. 47 to 50 is the range I’m watching, and price is tightening up enough here for me to put Twitter back on my watch-list for a trade. Let’s see what we get.

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Evan Medeiros

Evan is the founder of the Trade Risk. With 25 years of coding experience and a B.S. in computer science, Evan brings a systematic discipline to investing in the stock market.

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