The stock indices trade mixed but not in bad shape at all. They have rallied up to next resistance and are easing laterally, holding the move in very orderly trading. That is quite good action as it sets them up for a try to move through resistance.
This is highlighted when looking at some of the true leading stocks. AMZN is in a 1-2-3 lateral pullback testing the excellent 2 week rally off the lows. TEAM, NOW are similar as leaders take a breather while others such as semiconductors take the point. This is underlying very good action for a new break higher, a third upside leg in this move.
We banked some NFLX as it gapped to the 200 day and showed a doji. Well, it has now moved through. Okay, we still have some positions, and it could very well be that NFLX tests this move for a couple of sessions, gives a new entry ahead of earnings. TECD is screaming upside another 2.5%, taking on the late Nov high; letting that position work along with others.
So that certainly sounds rosy to end the week, and some might think we are turning bullish late. Nope, not bullish, not bearish, just reading the market moves and setups. With AMZN and company looking to set up and lead again, we want to be ready to play them just as we prepped with downside positions ready to go in the event this resistance suddenly triggers algos to 'sell, sell, sell.'
SP500 -1.08, -0.04%
NASDAQ -13.44, -0.19%
DJ30 -18.35, -0.08%
NASDAQ 100 -0.28%
Jon Johnson, Chief Market Strategist
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