Today’s price action should not have come as a surprise to anyone: following yesterday’s broadly bullish push, the market indices took a day to consolidate.
The S&P 500 ended the day essentially flat and at the 2100 level. The Russell 2000 pulled back about -0.8% and under its 200 day moving average, but remains well above the key support area around 1200.
In my opinion, the odds still favor bulls and I would have to revisit this hypothesis should the S&P 500 fail to hold the 2075 level and/or the Russell 2000 could not stay above 1200.
The following are five setups I will be watching tomorrow:
Booz Allen Hamilton Holding Corp (BAH): A late July breakout over the 200 day moving average signaled trend change for Booz Allen Hamilton. The stock (BAH) has been consolidating ever since and it now seems to be getting ready for a push through 28 and toward 30.
Northrup Grumman (NOC): Lovely price structure and stock price action within a strong sector – What’s not to like with Northrup Grumman? NOC is flagging for a potential push toward 180 and beyond.
ProShares UltraShort 20+ Year Treasury (TBT): The 2x treasury short ETF has seen a controlled pullback to support in the 42-43 area. Recent price action on TBT looks like it is putting in a short to intermediate-term bottom. FULL DISCLOSURE: I am currently long TBT in the Tactical Alpha model portfolio.
Tractor Supply Co. (TSCO): Tractor Supply has been a mostly-sideways moving stock that requires a lot of patience. But the recent price action on TSCO suggests that it’s flagging for a continued slow grind toward triple digits.
Weyerhaeuser (WY): Much like the REIT sector itself, Weyerhaeuser (WY) looks like it is getting ready to break out of a long downtrend. WY is flagging for a potential push toward 32-33.
Thanks for reading and have a great rest of your week.
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.