After Wednesday's strong move following mid-term elections, we had a Fed day Thursday that was seen as constructive consolidation following Wednesday's action. All of that was quickly negated Friday when we gapped lower pre market and followed through to the downside, taking out Wednesday's lows and damaging many charts in the process. That action is very telling and thoughts of a V bottom have vanquished as we're in need of consolidation of some sort. Wednesday's high (area) and the previous Friday's pivot point (area) become important areas of support and resistance, and will be the area I look to for major clues of market action going forward. From a constructive standpoint, the bulls want to see the $270 area (previous resistance meeting the 200sma) become support in the SPY.
The reality is that we went from extremely oversold and became extremely overbought before and after Wednesday's breakout. So, we're in a very wide range in the indices right now. Mapped out support and resistance of the indices below.
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We have been watching this GKOS since it first gapped up in August. Since then its virtually flagged out over a two month span. It released well received earnings Wednesday night and looks to be knocking on the door of that first resistance area we've been looking at. Want to see some big volume through that $63 area in this wide range biotech. If this triggers Monday morning I will give 3/4 of my stock to the current low-of-day.