Solid bounce yesterday, but can the markets today follow through?

For many years now, when we see the dead cat bounce come about, stocks overall will look to continue the bounce for several days going forward. For the markets today, will that ring true yet again? The futures are slightly down, but that has been the norm of the past couple of days: sell off overnight and rally during the market open. 

The market is dealing with some heavily oversold conditions, so the potential is there for further follow through. There is a nice short-term double top pattern that has formed with the right side being slightly lower, but still the intent is there, and that pattern has actually confirmed. But yesterday’s bounce takes price back above the neckline of that double top confirmation area. So now that chart pattern, as many other bearish patterns in the past, is in jeopardy of being nullified. T2108 is still showing a very low reading where only 41% of stocks are trading above their 40-day moving average.

Oil bounced yesterday, but still in a solid downtrend. 

VIX is VIX – the thing can not sustain a rally of any sorts. Don’t believe me? Just look at the last two days of the VIX chart and you’ll see what I am talking about. Every rally is pounced on hard. 

Of all the indices, the Russell look like it is in a 4-month consolidation and has been absent for much of the Trump Rally since December. The Dow Jones Industrial Average looks the weakest, and the Nasdaq continues to flex its muscles – by far the best of all four indices. And of course you have the S&P 500 snugged somwhere in the middle of all of them. 

S&P 500 Chart

Current Stock Trading Portfolio Balance: 

• 3 Long Postions

Recent Stock Trade Notables:

• Alibaba Group (BABA): Long at 105.736, closed at 108.22 for a 2.4% profit. 
• Facebook (FB): Long at 134.27, Closed at 139.23 for a 3.7% profit. 
• CDW Corp (CDW): Long at 58.65, closed at 58.91 for a 2.7% loss. 
• Redhat (RHT): Long at 82.41, Closed at 83.53 for a 1.4% profit. 
• Ambarella (AMBA): Long at 57.15, Closed at 55.52 for a 2.8% loss. 
• Alibaba Group (BABA): Long at 104.73, closed at 106.05 for a 1.3% profit. 
• Broadcom (AVGO): Long at 218.63, Closed at 222.71 for a 1.9% profit. 
• American Airlines (AAL): Short at 44.76, Closed at 44.03 for a 1.6% profit.
• UPRO  (Day-Tade): Long at 95.35, closed at 96.50 for a 1.2% profit.
• OZRK: Long at $56.12, closed at $54.69 for a 2.5% loss. 
• FNSR: Long at $34.25, closed at 34.70 for a 1.3% profit. 
• UPRO  (Day-Tade): Long at 96.92, closed at 98.03 for a 1.2% profit. 
• JP Morgan Chase (JPM): Long at 87.21, closed at 89.67 for a 2.8% profit. 
• Chevron (CVX): Short at 110.03, covered at 111.85 for a 1.6% loss. 
• Flex Technologies (FLEX): Long at $15.62, closed at $16.57 for a 6.1% profit. 
• Baidu (BIDU): Long at $174.70, closed at $187.00 for a 7.0% profit. 
• Ollie’s Bargain Outlet: Long at 33.20, closed at $32.50 for a 2.1% loss. 
• Corning (GLW): Long at $26.98, closed at $27.45 for a 1.7% profit. 
• Illinois Tool Works (ITW): Long at $127.74, closed at $129.86 for a 1.7% profit. 
• Marriott Int’l (MAR): Long at $86.16, closed at $87.51 for a 1.6% profit.