Quiet Two Way Action

overall market outlook, gap analysis, trade expectations

I expect the market to see some two way trading today. The close at the midpoint of yesterdays range suggests indecision and lack of commitment by both the bulls and the bears. I believe it will be a relatively quiet and choppy session as we digest yesterdays sell off.

Small gap up coming into the open. I would expect it to get filled this morning, path of least resistance still lower.

Choppy two way trading today should set up some nice long and short scalps across different stocks but profits should be taken fast. I believe most breakouts/breakdowns will fail so you will want to have your levels at hand and be quick taking gains.

• $SPY support at 141.65. Yesterday intraday support.
• $SPY resistance at 142.1. Yesterdays highs.

• $AAPL – buy at 630 with a stop at 625 and a target of 640. gapping up above yesterdays high. Should be in play to long side.
• $GOOG – sell short at 750 with a stop at 755 and a target of 740. Recent weakness, expecting sellers to follow through

• $AAPL – looking for opportunities to sell short. gapping above yesterdays intraday downtrend line, looking for short scalps so long as price remains below 625
• $FB – looking for opportunities to purchase long. Huge gap up off of earnings. Classic short squeeze is on, Do not chase at this level. let price settle
  and see how much of the gap gets filled. Look for long entries once support is established.
• $GOOG – looking for opportunities to purchase long. outperformed the market yesterday to the longisde. Look for long setups above 685.
• $PCLN – looking for opportunities to purchase long. Another strong stock yesterday given the market weakness. I like long setups above 575.