MV Weather Report: A Flurry of Catalysts on Turnaround Tuesday
Rain or shine, we review the day's biggest stock stories.
Alas, Green Monday didn't last long, as an up opening was quickly met by sellers. Traders were content to give back merchandise: It seems no one wants to own em' into the lows. The low of 741 has withstood today's onslaught, as the market closed at S&P 743.
After 6 straight down days, the market may be getting a tad oversold. Here's the view from Kevin Depew, using TD technical-analysis techniques.
"Just a reminder, while I briefly have access to a computer here, that a low below 741.05 (basis SPX cash) will perfect a monthly TD-Sequential buy setup. As well, because we have not had a higher close since breaking below the 777 level, there is no way to "qualify" that as a break.
"This is the most bullish near-term scenario: That we perfect the monthly buy setup without qualifying a break of 777, even as we are recording buy signals on daily and weekly SPH9 pit."
You can't nail the bottom; you can't sell at the absolute top. For readers looking for an oversold rally -- and we are fast becoming oversold -- today may have been a good day to start small positions. The best setup could happen tomorrow, as I think a gap lower into Turnaround Tuesday could be met with buyers.
Here's Smita Sadanda's take: "An ugly close like this warrants caution. While indicators are getting very oversold now, it doesn't preclude a Tuesday morning drop before a pop."
I always like to trade off catalysts, and Turnaround Tuesday is full of them. Tomorrow morning, traders will be met with economic data: S&P/CaseShiller Home Price, Consumer Confidence, and the House Price Index. In addition, there's a good chunk of earnings reports before and after the bell.
Before, we'll hear from Dominos (DPZ), Foster Wheeler (FWLT), Home Depot (HD), Heinz (HNZ), and Target (TGT). After the bell, First Solar (FSLR) and Wynn Resorts (WYNN) will report.
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Have a great night, Minyans!
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