(Addendum: Futures are currently higher and while this could be continuation of our up-trend, it could also just be a bounce. We can play certainly play it, but I am still cautious about the coming days direction.)
While longer term up-trend in $SPX is in tact, we are in a short term down-trend correction phase. More distribution has come into the market and while it could be a very short term correction that soon continues to the upside, we can only trade by what we see. Currently I see more downside in the near term. Maybe it is only a day or maybe it is a week or longer. As such I am watching stocks for both the short and the long side. The first level of support from last week's break-out was breached. The next level I see is the bottom of the rising channel denoted by the arrow in the chart below, around 1423. If we lose this, I will look at 1400 for the next level down.
A few stocks I am watching going into 9/27 follow.
$LII has had two days of selling after a significant uptrend. It has closed below the 8-ema and I suspect it will drop further, heading down to the 50 day for starters at 46.35.
On the long side, I like $JBHT which is creating a Fry Pan bottom and has popped up through the 8-ema with the 50 and the 200 days coming together just above.
$CIM still on watch from yesterday tried to break out today but was waylaid by a heavy market. The more often it knocks at that door, the more likely it will open. This cup and handle into an ascending triangle makes for a beautiful bullish chart.
I like $IDCC here with this strong move above the 8-ema after a pull-back and all other MAs coming together below. Looks like it is setting up for the next leg higher.
Also, a few that have been pointed out to me by my friend and fellow great trader @legalgambling, I like $GFA & $MPEL. Both have large cup & handle formations and are above the 8-ema. Also $TSM which pushed above the 8-ema even while $SOXX is down.
I am currently short $AYI, & $MLNX and long $PWER & $SHOSR
Comments and feedback welcome.