The market opened stronger today, continuing the late week rally that sprung from last Thursday's opening low. SPY gapped up, opening at 405.08, and remained strong through the early morning. The stock reached 407.45 shortly before 11:30. That proved to be the high of the day, with SPY drifting lower through the afternoon. With half an hour of trading left, SPY closed that opening gap. After hitting a low of 404.03, it once again pushed towards 405.00 into the close.
SPY remained below the critical 411 level I had mentioned over the weekend, so the two counts I reviewed thoroughly in the Weekend Update remain in play. The market is now at an inflection point, and how it reacts at this level will be pivotal.
Technically, SPY came off the overbought levels of the morning to finish the day in oversold territory on the 15 Minute chart. There is also a small positive divergence near the end of the day.
Since I have been also following TSLA recently, I have decided to include that analysis here also.
Following the sell-off last Thursday that brought TSLA to 186.01, the stock rallied back to 200.48 on Friday. It was unable to hold the 200 level, and saw a bit of a sell-off into today. I continue to count the completion of a 5 wave sequence from 101.81 at 209.41. The following move to 186.01 could possibly be a correction low.
Today's drop took TSLA into oversold territory on both the 15 Minute and Hourly charts, with a positive divergence on the 15 minute chart, which would be a good place to rally off of. The important levels to watch are the 186.01 low, and the 209.41 high.
Stocks to Watch:
Here are a couple of stocks I will be watching on Tuesday.
AMGN:
AMGN gave a short term buy signal today. These signals usually last 1-3 days.
No comments:
Post a Comment