Markets gapped up this morning then rolled over and made a 5 wave pattern to the down side. The first 1% correction since October last year. I wouldn't be surprised to see the markets gapped down at the opening to hit support of 5300 on the NDX and 2340 on the SPX. If we do see a gap down, then I wouldn't be surprised to see a snap back as well. The primary trend for this market is up and a 1% move to the down side is healthy not catastrophic. It is a typical chart pattern (inverse is the same). Work your way up and then sharp spike down. Work your way up to new high and then sharp spike down. The leaders to the down side were the leaders to the upside - financials (FAS is the ETF). With this sharp of a drop, expect financials to drop another day before any kind of bounce.
Oil is looking weak in here. Expect it to go lower.
PULM: There is always stocks that fight the tape. Today it was PULM. On positive news the stock broke out of its down trending channel trading as high as $4.10 before closing at $3.88. It broke through the moving averages and the declining tops line today. If we get follow through and a trade above today's high then $4.75 and $5.50 are the targets.
TDOC: A stock I have been writing about for some time. When a stock is making new highs when everything else is dropping, you know when things turn this stock will explode. Stock has very good momentum and today made a 2 year high. It traded as high as $24.05, closing at $23.95. It will run into resistance at $24.50 but my price target is $28.50 and then $35.00. Shorts 13.40 days to cover.
VRAY: Another stock bucking the trend today. Yesterday it broke out of resistance at $6.40. Today, it traded up to $7.30, closing at $7.16. $7.30 is resistance. But if it can get through that level then $8.00 and $9.00 are the next price targets.
GIII: As you know, if you write about a stock enough, eventually you will be right. Stock broke below the $24.00 range I had been talking about and closed at $22.16. It is headed for $19.00. Shorts, 16.4 days to cover.