The Shakedown 4/15/18

The chop continues! 

It appears the market is not ready to break above key resistance areas just yet. Last week was filled with very choppy action across the board, and I thought Friday's action was very telling. See the chart below of the SPY (excuse the platform - just wanted to show the longer term moving averages.)

This whole week we were keyed in on the S&P 2660 resistance, shown at $266.60 in the SPY. This resistance shown true through a previous support area as well as overhead moving average resistance (50sma/100sma). For a healthy bounce, we want to see that area decimated as a mix between buyers loading up as well as shorts covering. But towards the end of the week, we didn't see that at all. We grinded higher up to the resistance, only to show a ton of late weakness Friday

The good news is earnings season kicked off last week with banks Citi, JP Morgan, & Wells Fargo reporting. They're good earnings were sold off, which is nothing new for the banks. We have a chunk of companies reporting next week, which is good news because it will give us trading opportunities that won't be affected by the market choppiness. 

Click above for this week's earnings calendar

We were watching this TILE for a move through this huge $26 level a while back and the trade never triggered. Since then it has consolidated really well just under the $26 level leading to the potential for a big breakout on a tight risk entry. 

Trigger: $26

Stop: $24.99

Target: $30-32+

Hope to see you in the chat Monday!


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