After more than a week of little movement near key near-term support levels, the market caught investors by surprise on Monday by gapping sharply higher and posting solid gains on the session. As we’ve been saying, the bearish arguments have been compelling, but that so far hasn’t had any real impact on the pricing action. Overall, the broader technical profile has remained positive, and while we always need to have a gameplan in place to react should the pricing action shift, the lesson is to not ever think you have some special insight that allows you to know when that’s going to happen before it does.
The danger here, of course, is that market players use Monday’s action (and early indications for follow-through on Tuesday’s open) to make a more graceful exit. We’ll see how that goes, but for now, there should be some good opportunities that develop as we head into the meat of earnings season. We continue to dig, and once again, have a few charts this morning for your consideration.
Let’s take a look at some charts:
At the time of this post, RevShark had no position in any of the stocks mentioned.
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