Watchlist Saturday

Market Posture:

Dow: IT (intermediate term) Neutral and ST (short term) Bearish. Note the first change in the IT trend in two months. The Dow is going tight ahead of the Fed. The market has had many critical earnings announcements and economic reports the past three weeks, so much of the news is being digested into the price action. It's likely that the two-month downtrend priced in "catastrophic" (as usual), and now that the news has been less than catastrophic and especially with the relative drop in oil prices, traders are getting a little indecisive. When the market or an index goes tight, there's no point in focusing on the more recent key horizontal supports (10,830 - 10,960) and resistances (11,700). Instead I focus on the short term diagonal lines around the Triangle until the index breaks out of the tightening range.

Here is a little wider view of the Triangle I showed on the Dow Friday:
(click on image to enlarge)

Here is a longer term view showing the Dow holding the real body of the Hammer/Engulfing candlestick on the Weekly charts:
(click on image to enlarge)

SPX: IT Neutral and ST Bearish. Once again, not much to say about the SPX that's different from the Dow. The recent key horizontal support is 1,200 - 1,215, and the recent key horizontal resistance is 1,285 - 1,291. And like the Dow, the SPX is going tight, so watch for the short term diagonal lines until it breaks.

Here is a shorter term look at the SPX:
(click on image to enlarge)


Here is a longer term view showing the SPX holding the real body of the Hammer candlestick on the Weekly charts:
(click on image to enlarge)

Naz: IT Neutral and ST icky-poo yucky.....Well, ok, ST Neutral.....The Naz is still chop and slop, and it's still stuck in its short term icky-poo channel (the technical name for a choppy variant of a diagonal channel). Resistance is 2,350, and support is 2,167 - 2,200 (if it ever breaks the icky-poo channel to the downside). I don't want to touch the Naz or the Q's with my bare hands until I see the chop and slop resolve itself.

Here is a the shorter term view of the Naz, I'm not even going to try to draw channel lines around that stuff, I'll just stand back and see what it does eventually:
(click on image to enlarge)


Here is a longer term view showing the Naz holding the real body of the Hammer candlestick on the Weekly charts and forming an intriguing potential Double-Bottom:
(click on image to enlarge)

Here are some interesting potential Bullish stocks for Monday-Tuesday:

Tech: SOHU, NIHD, (ADBE)

Financials: MS, STI, (PRU, HIG, AET)

Manufacturing/Machinery: BUCY

Railroads: NSC, UNP, (CSX, BNI)

Food&Beverage: KO

Note: DHR, NOV, HES, SUN, MRO, AMZN, CCL, VAR, AG, AKS, X, (CL, ESRX)

Here are some interesting potential Bearish stocks for Monday-Tuesday:

Cyclicals: OI

Coal: ACI, PCX, BTU, CNX

Note: APD (Bearish Breakout), PX, FE, FPL, KLAC, NYX, COST, WFR, AFL, ETN, FCX, NUE, (ANF, BG, PH, CAT, ETR, EXC, NMX)