On Monday, SPY blocks poured in at 257.10 during the morning session. This level is overhead resistance as earnings dampen participation. Over 100 companies are reporting this week, with big technology stocks AMZN, INTC, MSFT, and GOOGL reporting after the closing bell on Thursday.
The morning reports from DOW components are impressive, sending futures higher in the pre-market session. As a result, the SPDR Industrial Sector (XLI) is pretty strong; look for setups therein.
From a technical perspective, SPY is more bullish than bearish. Institutional sentiment as measured by the TICK cumulative in the lower panel indicates institutions are buying.
Wicks on the chart above at 4:10 PM (16:10) amount to another 5.7 million shares in blocks (late prints) traded at the 257.10 level.
All things considered, banks are strong this morning. Watch BAC, C, GS, JPM, and MS for 5-minute ToD setups today. These candidates should benefit from earnings surprises this morning.
PII beat, so we might see a pop in FOXF today; it reports 10/31.
Some of the gems from yesterday included HD and YY. Note the obvious ABCD pattern. It should be no surprise why we decided to swing this position in YY, with its target short term near 100 (+/-).
Finally, we would be pleasantly surprised to see a seventh week higher, however, we are still taking profits into this strength in anticipation that we could pullback soon.
More to come. Join us LIVE at 9:20 AM.
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The previous breakout …….