The SPX continues to be very strong maintaining its upward trend. The NDX, not as strong and could be forming a head and shoulders pattern. The transportation index has broken out of its up trend channel and looks to be starting the 5th wave of a 5 wave pattern. It is very strong, rocketing of support and going straight up for the last week.
The Russell 2000 (IWM) has broken out of its base. It had two sharp reversal days but held support so remains in an up trend.
Semiconductors (SMH) has held support on a 2 year trend line but it is in danger of dragging markets lower if it should break down further. I wouldn't be looking to put any trades on longer than a day trade or scalp in this sector at the moment. There is too much risk that it breaks down from here.
Biotechs (BIB, LABU and XBI) have all rallied in the last few days and have come up against overhead resistance in a declining tops line. So, it appears that the market is at a critical juncture and we should see some direction over the next week or so.
Financials (FAS) remain strong and may be needed to drag everything else higher with it.
Gold (GLD) looks to be heading lower. It has broken lateral support and the up trending channel. I am not looking to trade precious metals anytime soon as I think gold is heading lower.
Oil (USO) is building a 3 year base and is now at the top of that channel. It is too early to trade yet as it is running into significant overhead resistance. But a break above the base and we could see a hot sector to trade.
ABEO: Well worth watching for a break over $17.50. Stock has been basing over the last month. It looks to be in the 4th wave of a 5 wave pattern. A break out of the base and the beginning of wave 5 could take this stock to the old high of $23.00 and then $28.00. Short ratio, 5.2 days to cover.
ACBFF: This cannabis stock is looking very strong. After breaking out of its base and now forming a wedge it looks poised to go higher. I wouldn't want to see it break the lower trend line. But if it pops out of this wedge then $7.00 and $9.00 are the targets.
APVO: Stock has had a sharp move up the last week and Friday it traded up as high as $4.50 before closing at $4.23. I would look to go long over $4.50 with $4.90 and then $6.00 as targets.
CDNA: Good looking chart as the stock broke out of its basing pattern earlier this months and traded up to $7.97 and has pulled back to support. On Friday it had a nice pop trading up to $7.21 before closing at $7.18. I would look to go long over $8.00 with $11.00 as a price targets.
CDXC: Stock has made a strong move since early November from $3.75 range to $7.25. It tried to break high a couple of times but pulled back to support. On Friday it gapped up and traded as high as $6.94 closing at $6.92. I would look to go long over $7.25 with price targets of $8.00 and $9.50. Short ratio, 9 days to cover. As such on a break out, we could see a nice short squeeze.
FANH: On Friday the stock broke out to the upside from a wedge formation. It traded as high as $24.61 closing at $24.57. I would look to go long over Friday's high with $26.00 and $28.00 as price targets. Strong chart in a nice up trending channel.
HALO: Stock is in a nice rising bull flag trading as high as $19.86 and closing at $19.61. This is an area of lateral resistance but I would look to go long over $19.90 with $24.00 as the price target. Short ratio, 12.8 days to cover.
IMMU: After selling off hard the stock has reversed and traded up the last three days in strong fashion. I would look to go long over $13.00 with $14.50 and $18.00 as price targets. Short ratio 9.3 days to cover.
MARK: What a reversal on Friday. Stock was in a falling wedge pattern and at the apex spiked to $9.34 closing at $8.84. I would look to go long over $9.80 with $13.00 as the price target.
QURE: Stock broke out of its base formation on Friday trading as high as $18.09 closing at $17.82. If this is the start of wave 5 of a 5 wave formation then price target is $24.00. Short ratio 12.5 days to cover.
VKTX: Last week the stock broke out of its base pattern. On Friday it traded above the double top trading up to $4.15 and closing at $4.08. I would look to go long over $4.15 with $5.00 as the price target.