Weekly Market Prep For 6/18 $SPY $IWM $QQQ $COMPQX #markets #trading #stocks

MARKET GAUGE: Confirmed Uptrend

*Weekly Sector Watch highlights several industry groups that have experienced a measurable change in strength or weakness relative to other groups over the last 3-6 week period.

SECTORS EXHIBITING RECENT STRENGTH: Software (Medical), Software (Gaming), Software (Design),  Electronic (Semiconductor Manufacturing), Electronic (Semiconductor Fabless),  Internet (Content), Wholesale (Electronics), Electronics (Misc. Products) Electronics (Wholesale), Electronics (Parts), Medical (Research/Equipment), Medical (Long Term Care), Transportation (Truck).

SECTORS EXHIBITING RECENT WEAKNESS:  Energy (Solar), Retail (Major Discount), Transportation (Airlines), Oil/Gas (Refining/Marketing), Oil/Gas (Field Services), Oil/Gas (Drilling), Mining (Metals/Ores), Banks (Foreign), Banks (Super Regional).

OVERVIEW: This week saw tech stocks and small caps continue their recent run to new highs, but the Dow which last week looked like it was ready to join the party turned tail as it posted four consecutive losing sessions to end the week. Although we do not focus on the DJIA here, it is noteworthy in showing the split that has developed during this confirmed uptrend in the market. While news of trade wars and a lack of participation from financials has plagued the index, there has been plenty of strength in various sectors for traders to focus on. In last weeks write up, we warned traders to stay on their toes for the possibility of increased volatility with continued geo-political concerns and the looming options expiration. While we did get some of this in Fridays session, the indices handled it well by closing off their lowest levels of the day. The distribution picture has brightened in the Nasdaq Composite and Nasdaq 100 this week due to their recent advances, while the S&P 500 continue to do battle with a key resistance level. Let’s go to the charts for a closer look.

SPY- After breaking out of a key congestion zone to start the month of June, the ETF quickly ran into its next big technical challenge near the $280 level. After testing the waters for four consecutive sessions to start the week, the EFT backed off on Friday. Fridays session saw the SPY dividend payout adjustment, so the gap down in the chart should be taken in context. Additionally, despite the spike in volume, the SPY will avoid a distribution day due to options expiration inflating the numbers. In fact, the S&P 500 index itself lost only 0.10% for the session which is shy of a qualifying distribution day. Next weeks post options expiration action may tell us more about where the index is headed, but in the meantime continue to focus on the individual names in your portfolio as well as the current market leaders, as these should be the ultimate barometer for your trading action. The ETF sits with five distribution days on the books, but will lose one of the count next week after Tuesdays close due to time.

NASDAQ- The Nasdaq Composite continued its June breakout by adding 1.32% this week as index components continue to be immune to trade worries at this point. The index has been trending steadily higher since early May and is now up over 10% from the low it posted on 5/3. The distribution picture brightened here as well recently as the 5/18 and 5/29 sessions (marked below in pink) were wiped clean due to the nearly 6% advance the index has registered from the lows set on those days. Volume spiked due to options expiration on Friday but the index lost less than the 0.20% needed to qualify for a technical distribution day. Additionally, in yet another bullish sign, the index finished in the top third of its range on Friday.

QQQ- The Nasdaq 100 also posted another strong week by adding 1.46% marking a new all-time closing high, and this marks the fourth consecutive week of gains for the index. Due to advance, we have wiped out three previous distribution days the index registered in May, and while we did decided to slap the Q’s with a distribution day on Friday, it is marked in blue and will be taken in context due to inflated option expiration numbers. The index now sits with only two distribution days on the books over the last 25 sessions and we will looking for support near the $175 level on any pullback.

IWM- The small caps were the most well behaved index on Friday and this should come as no surprise. Th index is now up over 14% since its April low and continues to act well. The index posted a gain of 1.29% for the week and has now registered an advance in six of the past seven weeks. The index sits with three distribution days in the current count, but the selling in two of those three sessions was fairly tame. Traders should continue to be diligent in looking for trading set ups within this group.

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$ROKU $YRCW $TWTR $RP $TDOC $VRNS $UAA $IQ Profits #trading #stocks #markets

Recent new buy ROKU is up nearly 10% this week. Members were alerted to go long on 5/25 and have already booked swing gains of 10.5% on half of their position and trend following with the remaining shares. Members also booked swing gains of $10.65% this week on YRCW. Members also sitting on gains of 66% in IQ, 33% in RP, 50% in TDOC, 40% in VRNS, 42% in UAA, and 34% in TWTR after having locked in swing gains in all of these names. Join us at our premium site http://www.ttptrading.com

roku

Closed Options Trades $GLD $MCD $OLED $AKAM $KNX $CONN $UNH $KEM $STI $MNST $JD $XLNX #options #trading #stocks #markets

Premium Members have been able to capture large gains in 9 of our 12 alerted option ideas over the last month in just a short period of time. Unusual option activity spotted in Monster Beverage and JD.Com netted triple digit gains in just days. On a technical basis, United Health calls delivered gains of 122% in only 3 days, while calls in McDonalds delivered gains of 73% in three days as well. Below is a list of our closed option ideas over the last month.

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Weekly Market Prep For 6/11 $SPY $IWM $QQQ $COMPQX #trading #markets #stocks

MARKET GAUGE: Confirmed Uptrend

*Weekly Sector Watch highlights several industry groups that have experienced a measurable change in strength or weakness relative to other groups over the last 3-6 week period.

SECTORS EXHIBITING RECENT STRENGTH: Software (Medical), Software (Gaming), Electronic (Semiconductor Manufacturing), Electronic (Semiconductor Fabless),  Internet (Content), Wholesale (Electronics), Electronics (Scientific/Measuring Equipment), Medical (Research/Equipment), Commercial Services (Healthcare), Medical (Long Term Care).

SECTORS EXHIBITING RECENT WEAKNESS:  Telecom (Infrastructure), Energy (Solar), Retail (Discount/Variety), Retail (Major Discount), Retail/Wholesale (Auto Parts), Retail (Consumer Electronics), Transportation (Airlines), Beverages (Alcoholic).

OVERVIEW: The confirmed uptrend that began in early April continued to gain steam this week, even the Dow decided to join the party as it led all indices with a gain of 2.8% for the week. Last week we mentioned that a push out of a recent congestion zone between $270 and $275 for the SPY would start to paint a better picture for the S&P 500, and this week it deliver with a gain of 1.68%.  Meanwhile the small caps continued their impressive breakout. We noted in last weeks write up that the successful retest of the breakout in the Russell 2000 gave us more confidence that the recent advance could continue, and indeed the index added 1.64% for the week good for an all-time weekly closing high. Although recent geo-political concerns were put to the background this week, there is still enough uncertainty in regards to tariffs and trade that should keep traders on their toes for a spike in volatility. Now, let’s take a look at the charts where the we find the distribution picture has brightened for the SPY, while the Nasdaq 100 struggled a bit to keep pace this week as it was rejected at all-time highs.

SPY- The S&P 500 ETF busted out of a recent congestion zone we have been watching for a while and finished the week nicely above that area closing at $278.19. However, the challenge doesn’t stop their for the ETF as it will quickly run into the next area of overhead resistance near the $280.00 level. This area represents a key level where the index gapped down as the February correction started to pick up steam. An ensuing advance that challenged this price area in March was quickly rejected sending prices back down to test the February lows. That double bottom pattern that has led to the current confirmed rally that began in April has made progress, but some bad memories await less than 1% from where we stand after Fridays close. We will be watching very closely as to how prices respond, if and when, this price area is approached. The distribution picture has improved here with the ETF losing two of those days recently due to time. We now sit with only four such days, compared to the six that we saw at the end of last week, over the last 25 sessions.

NASDAQ- The Nasdaq Composite’s recent major breakout above the 7500 level seemed to easily breeze past its all-time high of 7637 early in the week, but a brisk sell-off Thursday reminded traders that some work may need to be done to clear this area. However, the index responded quickly on Friday with a modest advance that did achieve a weekly all-time closing high. The index has picked up three fresh distribution days over the last two weeks despite the move higher, and this brings the total up to five days in just the last 18 sessions. A couple more days of institutional selling next week may start to raise some caution flags, but for now its tough to argue with new highs. A pullback to test the 7500 level, similar to the retest that Russell 2000 recently put in, is not out of the question.

QQQ- The Nasdaq 100, not surprisingly, has been running in lock step with the Composite and it also had some trouble this past week after it eclipsed its all-time high on Wednesday with a reversal on Thursday, but it too was able to notch an all-time weekly closing high. That said, the late week pullback put the index back into a support/resistance zone that has set up roughly between $175 and $171. Like the Nasdaq Composite, a pullback to the bottom of the box to test the $171 area is a possibility, and if so, we will be watching the corresponding volume levels. The index sits with four distribution days in the current count.

IWM- The one index we track here that is in clear air is the Russell 2000. The mid-May breakout was successfully tested later in the month and it has been clear sailing ever since. Although the trend is clearly higher, the index is now close to 5% above the 50 day EMA, so a consolidation in the near term is not out of the question. The index looks healthy showing only two distribution days over the last 25 sessions.

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Weekly Market Prep For 6/4 $IWM $QQQ $SPY $COMPQX #trading #markets #stocks

MARKET GAUGE: Confirmed Uptrend

*Weekly Sector Watch highlights several industry groups that have experienced a measurable change in strength or weakness relative to other groups over the last 3-6 week period.

SECTORS EXHIBITING RECENT STRENGTH: Metal (Proc./Fabrication), Medical (Products), Software (Medical), Software (Gaming), Oil/Gas (Refining/Marketing), Oil/Gas (Transport/Pipeline), Electronic (Semiconductor Manufacturing), Electronic (Semiconductor Fabless), Wholesale (Electronics).

SECTORS EXHIBITING RECENT WEAKNESS: Computer (Data Storage), Computer (Networking), Telecom (Infrastructure), Energy (Solar), Commercial Services (Staffing), Retail (Discount/Variety), Oil/Gas (Drilling), Electronic (Scientific Measuring Equipment).

OVERVIEW: On Friday the market finally decided to shake off concerns of trade wars and responded well to a blistering unemployment report. The indices continue in a confirmed uptrend that was initiated with a rally on 4/4 and was confirmed on 4/10 with a follow thru day however, it has not necessarily been smooth sailing. While the small caps have led and acted well relative to the rest of the market, the current rally was met with heavy selling in late April that sent the S&P 500 back down to test its 200 day moving average to start the month of May. Since then small caps and tech stocks have had an easier time of it while the S&P 500, along with industrials, have lagged behind. We noted to clients at the beginning of the year that 2018 market surely would not resemble the 2017 market and that has definitely been the case. The S&P 500 was in a tenuous spot early in the week as it broke below a key level near $270 piercing its 50 day exponential moving average in the process. The bulls needed a strong end to the week to eliminate a bearish picture for the index and participants delivered. Now, let’s take a closer look with charts of the four indices we cover here.

SPY- The S&P 500 ETF, that we like to use here to track the index, was painting a bearish picture mid-week with heavy distribution days on Tuesday and Thursday, but bulls delivered a much needed shot in the arm on Friday as they pushed the index up nearly 1%. The close put the ETF back into a congestion zone between $270 and $275, but more importantly put it back above the key support level that sits near the April highs, and also back above its 50 day EMA. The distribution picture, which currently sits with six days, will improve slightly with the 4/30 session coming off the books after Mondays close. A push out of the congestion zone that eclipses $275 will start to paint a much more rosy picture for the S&P, but another challenge awaits not too far above near $280.

NASDAQ- The tech heavy index paints a much brighter picture as it is now threatening all-time highs. The Composite advanced 1.5% on Friday easily dicing thru the round number resistance level of 7500. The move can be viewed as a major breakout. Breakouts can originate from handle like areas near the top of their base even though prices are still slightly below prior highs. This particular base has been forming for nearly three months since the index peeked in early to mid March. That’s said, the old high that sit near 7637 can still present an obstacle. From here, some follow thru on strong volume above the old high will legitimize the breakout attempt. The index loses the 5/2 distribution day due to the 6% advance since then, leaving it now with only four in the current count.

QQQ- The Nasdaq 100 paints a similar picture as the index broke thru resistance on Friday on solid turnover. We previously noted the bullish candle the index printed at support near $167.00 on 5/23 which helped lead to this weeks push above resistance near $171.00. We will see if the old highs near $175 on any further advance present an obstacle for the index.

IWM- While the Nasdaq Composite and Nasdaq 100 are trying to put together fresh breakouts to new all-time highs, the Russell 2000 already sits with a new all-time weekly closing high. Small caps broke out on 5/16 and pulled backed to successfully test that level on 5/29. The index is now up over 10.5% from the initial rally day it posted on 4/4. The advance from this area has been more orderly that of its peers and it has achieved this with little to no signs of distribution in the process, in fact, the index picked up its first distribution day on Thursday in the last several weeks. The successful retest of the breakout on 5/29 makes us more confident than we were last week that the advance in the index can continue.

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SECTOR WATCH: Trucking/Logistics $ODLF $SAIA $SNDR $JBHT $LSTR #trading #stocks #markets

OVERVIEW: Trucking stocks have been acting well as of late and some appear like they may ready to hit the road to profits. The group staged a fierce rally that started in mid 2017 that yielded a 72% advance into early 2018 before the group went into an 18% correction that now appears to have ended with the group rallying 15% since the start of May. The current base the group is working through looks very similar to the prior one from early 2017 that spurred the big advance. That base went through a 20% correction that lasted a bit longer, six months, than the current three month base the group is working on now. There are a few stocks in the group that are currently trying to stage breakout attempts and a couple more in the closely related Shipping and Logistics space trying to do the same. Here is a look at the group chart before we move on to some individual names.

ODFL- The stock is in the process of staging a break out of a four month base and is still well with buying ranges. One concern here is the light volume on the recent push to new highs on Friday. Perhaps some light holiday trading into a long weekend is the culprit, but we would like to see some continuation here on some heavier participation.

SAIA- This stock bounced off the 200 day MA to start the month of May and has virtually run straight up since into new high territory. Like many trucking concerns the stock is a bit thinly traded and it too has left a bit to be desired in terms of breakout volume. The stock has moved up over 25% in four weeks, so players who do not want to trade a breakout here can look for a possible pullback at some point to get aboard if the momentum continues.

SNDR- This stock was a new IPO in April of 2017 at $19.50 and rallied over 50% before pulling back with the rest of the group near the start 2018. The stock has formed a four month cup shaped base that recently challenge old highs near $30 and last weeks pullback may be forming a handle area that could be a prelude to a new breakout.

JBHT- Shipping and Logistics company JB Hunt staged a breakout attempt this past Monday but was thrown back immediately. The stock quickly regrouped late Wednesday and pushed right back into new high territory by the close on Friday. Perhaps this second chance breakout attempt will stick after shaking out some weak hands.

LSTR- Our last look is at another Logistics firm in Landstar Systems. The stock garnered solid support at its 200 day MA during the course of its current four month base and has now pushed up into resistance near old highs close to $115. The stock has been a top earner in the group so we will be watching for a fresh breakout here.

SUMMARY- The economy appears to be growing at a solid pace which should be a catalyst for the group to continue higher. A wild card for the sector would be pullback in oil prices, which did take a big hit in Fridays session.

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Weekly Market Prep For 5/29 $IWM $QQQ $SPY $COMPQX #trading #stocks #markets

MARKET GAUGE: Confirmed Uptrend
*Weekly Sector Watch highlights several industry groups that have experienced a measurable change in strength or weakness relative to other groups over the last 3-6 week period.
SECTORS EXHIBITING RECENT STRENGTH: Transportation (Air Freight), Transportation (Ship), Retail/Wholesale (Auto Parts), Metal (Proc./Fabrication), Finance (Consumer Loans), Medical (Products), Software (Medical), Real Estate (Development/Ops).
SECTORS EXHIBITING RECENT WEAKNESS: Computer (Data Storage), Computer (Networking), Telecom (Fiber Optics), Telecom (Infrastructure), Consumer Products (Electronics), Retail (Electronics), Energy (Solar).
OVERVIEW: With most people enjoying their long holiday weekend I will keep the review brief. The indices pretty much ran in place this week marking some more time. This passage of time did aid the indices as they lost some distribution days giving them an improved look, at least in this category. The Nasdaq Composite and Nasdaq 100 did both manage gains of more than 1% as the S&P 500 and Russell 2000 remained pretty much unchanged. However, there were some important technical levels successfully tested this past week in the Russell 2000 and Nasdaq 100, so let’s get right to the charts and take a look.
SPY- The 4/20 distribution day came off the books this week in the S&P 500 ETF pairing the total down to five days over the last 25 sessions. The total had reached a high of seven days, so this remains a positive development for the index. Things can improve further in this regard early next week as the 4/24 day will also evaporate from the count due to time. Remember, distribution days that date back more than five weeks become much less relevant in terms institutional distribution. The index ETF has been able to hold support near that $270-$271 level we have discussed here at length, but has been unable to pull away to the upside thus far keeping the mood a bit tenuous. With the 50 day EMA now regaining its upward trajectory, we can look to that area for support going forward should the index back up. The ETF looks like it has set up a congestion zone between $270 and $275, and although Fridays action was fairly quiet heading into the three day weekend, perhaps things are set to pick up next week giving us a resolution one way or the other out of this price zone.

SPY

NASDAQ- The Nasdaq Composite continues to paint a better picture than the S&P 500 as it sits less than 3% from its all-time highs with only three distribution days on the books. The index has held the key 7300 level above the April highs and the 50 day EMA has turned higher here as well. Any advance from here may be met with some tough resistance near 7500, a big round number that sits just below the old highs set in March near 7637.

COMP

QQQ- The Nasdaq 100 is pretty much a carbon copy of the Composite. The index flashed a positive sign by printing a bullish candle on Wednesday that bounced off recent support near $167 with the index finishing at the highs of the day on increased volume over Tuesdays session. The index does have a challenge sitting just above with resistance near $171. Beyond that the old highs await near $175. It too sits with only three distribution days in the current count.

QQQ

IWM- The Russell 2000 continues to be the leader in the clubhouse. We mentioned in last weeks prep that the index was getting extended in the near term and a test of the breakout level may be in the cards. Well the index did indeed pullback, and on Thursday it tested the top of the breakout level. So far the index has passed the test, but we are not in the clear yet as we would still like to see the index pull away from the top of its base convincingly. Due to the passage of time the index has cleared itself of all distribution days presenting a picture of health in this regard.

IWM

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The Gap Dilemma $TEVA #stocks #trading #markets

OVERVIEW: We recently highlighted TEVA as a long candidate but initially passed on the trade as it gapped up over 7% this last Monday extending itself above the buy point of the technical pattern the stock had carved out over the last several months. We had been looking, and hoping for, a bit of a pullback this week before considering putting a position on, but after a tight range on Tuesday that saw the stock close near unchanged, the stock again gapped up on Wednesday after news came out that Warren Buffet has a new position in the stock and it has continued higher since. Although it is difficult to watch a trade you have been lining up take off without you, I have come to be able to shake this type of thing off a bit easier than I had been able to in the past. We, as human beings, can have a selective memory when it comes to things of this nature. We seem to forget the trades that we passed on that ultimately went in the opposite direction which would have netted a losing trade for our account and only remember the ones that advanced without us. Many trades will come across our screens that for some reason or another we will not take part in, but like they say, you can’t kiss all the women, unless your Bill Clinton, of course. So with that in mind, let’s see what happened with Teva Pharma and how we can deal with these gap situations in the future. Here is the current chart showing the gap out of the triangle pattern shortly after a bullish moving average crossover, as well as the second gap higher two days later.

 

As we pan out and look at the longer term chart below we can see the stock made nearly an 18 year low in the tail end of 2017. From there the stock began a fierce recovery that saw the stock price double in less than three months. Since then the stock had formed a constructive looking five month base and ascending triangle pattern. In early May the stock caught our attention again when the 50 day MA crossed back up over the 200 day moving average and price started to press up against the top of the triangle. Unfortunately, the stock gapped higher out of the pattern adding an element of risk to the trade that we weren’t counting on initially. Why? Because now we must decide whether to buy the gap, which will likely result in us having to widen our stop beyond where we normally would have with this pattern, or accept the higher risk of being taken out of the trade prematurely with a tighter stop that would likely be taken out on a normal pullback. A third choice was to pass on the trade, which we did, hoping for a near term pullback. As traders we will be faced with these type of situations from time to time. We certainly would not have been “wrong” to take the trade on the gap day provided the gap wasn’t extreme and trade still fit into our risk/reward profile, in our case we just simply opted to wait for a pullback, which we often like to do, and unfortunately that did not materialize. From here it is important for traders to keep this stock on their watch list as it may set up for another trade on a qualifying pullback, or future breakout pattern. Often traders can get so frustrated in missing out on a trade in a certain name they cast the stock aside and forget about it causing them to miss on a possible future opportunity, in this case the chart shows a pause is possible near $22.70, this price marks the high posted in January of 2018 which ultimately led to the five month correction in the stock, so perhaps this area presents an opportunity for the stock to set up again, we shall see. And always remember in regards to opportunities you think have passed you by, it is always better to be on the pier wishing you were on the boat, then to be on the boat wishing you were on the pier.

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Weekly Market Prep For 5/21 $SPY $QQQ $IWM $COMPQX #trading #markets #stocks #indices

MARKET GAUGE: Confirmed Uptrend

*Weekly Sector Watch highlights several industry groups that have experienced a measurable change in strength or weakness relative to other groups over the last 3-6 week period.

SECTORS EXHIBITING RECENT STRENGTH: Oil/Gas (US Exploration/Production), Oil/Gas (International Exploration), Oil/Gas (Refining/Marketing), Oil/Gas (Machinery/Equipment), Transportation (Air Freight), Transportation (Rail), Steel (Specialty Alloys), Metals (Proc./Fabrication), Retail (Specialty), Software (Medical).

SECTORS EXHIBITING RECENT WEAKNESS: Computer (Data Storage), Computer (Networking), Internet Content, Transportation (Airline), Finance (Specialty Services), Finance (Mortgage Related), Finance (Foreign Banks), Telecom (Wireless), Agricultural Operations, Utilities (Electric).

OVERVIEW: After posting solid gains last week the indices mainly treaded water this week with the exception being the small caps as they continued their leadership registering a third straight week of gains. Technology shares took a breather hurt by some late week weakness in some semiconductor names, while the energy sector continued to plow ahead with a weekly gain of over 2%. Basic Materials, Healthcare and Consumer Cyclicals also turned in solid performances for the week. While new highs in the small cap sector are good to see, larger cap names continue to lag which continues to be a slight concern for us. Additionally, we would like to see the Russell 2000 pull ahead further building on last weeks breakout. A failed breakout that returns the index back into its base could be a huge negative for the markets. As usual there are many issues overhanging the markets such as as rising interest rates, higher commodity prices, a higher US Dollar and the usual geopolitical issues. It’s impossible to forecast with any accuracy how these issues will effect the indices going forward, if you find someone who claims they can, run away fast, if we all knew with certainty there would be no market. So, rather than fretting about all the recent concerns that float around from day to day, we will do what we always do and monitor the indices for any clues to possible changes in character and let the action of the stocks in our portfolio be the ultimate barometer for our trading. With that, let’s get right to our charts of the four major indices we monitor here in preparation for next week.

SPY- After gains of over 2.5% last week, this ETF that we like to use to monitor the S&P 500 traded lower by 0.52% this week. After taking a big hit on Tuesday that sent the index back below the April highs that were mounted recently, it was able to rally back above that level on Wednesday before barely being able to hold onto that level at the close on Friday. Although Fridays selling was fairly muted, the index did technically pick up a distribution day making for a seventh day of institutional selling over the last 22 sessions. While five to seven distribution days over the course of the previous 20-25 trading days is normally a cause for concern, we always preach about keeping things in perspective. In this case we will consider that the May options expiration added to volume levels on Friday. Additionally, the loss for the index of 0.25% was just above the cutoff for a distribution day, and with the index holding above its 50 day moving average, we will keep from getting too negative about what saw from the S&P 500 in terms of distribution. While we have used the $271 level, as well as the 50 day EMA on the index is our most recent measure of progress, markets are never obligated to clearly hold or break support and resistance levels or provide traders with picture perfect trends. The real possibility of further choppiness that vacillates across all areas of support on our charts  is something we always must consider as traders.

NASDAQ- The Nasdaq Composite continues to work through a nearly four month basing pattern and was able to finish the week modestly above the most recent resistance level near 7320. On Monday the index ran higher and nearly covered the gap that was left in mid-March when the index headed south shortly after reaching all-time highs. This area, near 7460 will present the first obstacle should the index try and continue its recent advance. The Nasdaq has looked better than the S&P 500 from a technical perspective while sitting much closer to its all-time highs, but the index did pick up a distribution day on Friday marking the fourth in the last 22 sessions, however, the 4/19 day will come off the books mid-week next week. Semiconductor stocks, which in part aided the recent recovery in the index, came under pressure late in the week. Chip stocks have now become a large part of the economy and helped throw the market into a correction earlier in the year so it will be interesting to see if more weakness in this area puts lasting pressure on the index once again, or if some other sectors pick up the slack.

QQQ- The Nasdaq 100 is a mirror image of the Composite. The index was able to escape a distribution day on Friday and finished the week by holding above its prior resistance level near $167.00. She sits with five distribution days in the current count but will lose the 4/19 and 4/20 sessions by late next week due to time. Looking at the volume pane below we can see that participation on up days over the last two weeks while the index rallied has been lackluster so it would be a welcome sight to see the index fire off some nice gains in the coming days on increasing volume. Without some heavier participation to the upside the most recent rally attempt may not have any staying power.

 

IWM- The Russell 2000 remains the beacon of light for the markets. The index has now seen gains in 10 of the last 11 sessions which has pushed it into all-time high territory. The index seems healthy from a distribution aspect as it has not seen a day of net selling by institutions since 4/24 and sits with only two distribution days on the books. We feel at this point that it may be key for the small cap index to pull away and add to its recent breakout. A failure here that throws the index convincingly back into its base may have ripple effect across the other indices, however with the index up nearly 7% from its lows on May 1st, a retest of the breakout area near $160.00 may be in the cards.

Our May Freeview of the Weekly Market Prep is coming to an end soon. If you would like to continue to receive it, along with real-time stock and option trade alerts that we are making for our portfolios, weekly stock watch videos, educational articles and more from myself as well as Greg Krupinski of GK trading, you can get it all for one price of $69.00 per month with no long term commitment. Simply visit us at http://www.ttptrading.com Hope to see you there soon!