Yesterdays selloff came in weak volume, but should be noted that Mondays have been exceptionally strong this year and that was not the case yesterday. VMW PCLN BIDU AAPL MELI were all weak. Leaders showing weakness can be a red flag. The Nasdaq was not helped by a GS downgrade of MSFT. A former leader with little revelance anymore, but compromises a large portion of the Nasdaq. A strong dollar put a damper on commodities as well.
VMW found support at its 50 day MA @82. A violation of that line could be shorted. Same can be said for CRM which found support at that line as well @110. These two former leaders breaking down thru that 50 day MA can be shorted at not be a good sign for the market itself as a whole.
As for the weak energy sector CPX WLL RES showed some decent relative strength. BEXP could form a handle in the next few days. Remember the handle must be 5 days long and form in lower volume.
DE found support at its 50 day MA. Lets see if that can hold in the next few days. Speaking of the 50 day MA lets see if ARUN @19 holds as well as 55 for CB.
Portfolio got stopped out on WYNN for a 2 point loss.
Good luck.
The author owns FCX AMT A TIBX EXXI APA WLL. Short AVGO PSA
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