MichaelGLamothe

MichaelGLamothe

There are presently 8 distribution days on the S&P 500...for all intents and purposes, I don't think it matters all that much...here's why The NASDAQ is pushing toward fresh highs and we're seeing a clear divergence between the price action on the NASDAQ vs the S&P 500 The S&P 500 is still testing its former high of 2137 as seen by the dotted read line of the...

MichaelGLamothe

ACIA broke above trend line resistance and quickly ran to a new weekly high. It spent the past week and a half quietly consolidating around the 21ema on low volume. The 100-103 level makes for a good near term stop as it closely coincides with the 21ema, the lows from 8/25, as well as the high from the gap up after earnings.

MichaelGLamothe

On the weekly chart shown here, AAPL is breaking above a 17 month descending trend line on heavy weekly volume. The relative strength line is showing outperformance vs the S&P 500 since the beginning of August.

MichaelGLamothe

Monday's rebound was impressive but today's sell off negated much of it. The distribution day count on the S&P 500 continues to climb and currently stands at 7 over the past 25 trading days (see daily chart, each distribution day is labeled). For now, I see the zone around 2140 as being an important line in the sand. Looking at the weekly chart it served as an...

MichaelGLamothe

We briefly saw the distribution day count on the S&P 500 slip back to 5 on Tuesday and Wednesday. On Thursday it climbed back up to 6. The index has basically traded sideways for the past 2 months. This has allowed the longer term moving averages, namely the 50dma and the 10wk line, to play catchup. So far these moving averages have acted as support. ...

MichaelGLamothe

Since reporting earnings last week, AMBA has spent the time consolidating on low volume around the 21ema as well as the ascending trend line that was formerly an area of resistance (now an area of support). In doing so, it has created a slightly aggressive entry point around 69.37. This would serve as both a break above the HOD from 9/6, a break above the 5ema...

MichaelGLamothe

AAPL has been trading below a descending trend line for nearly a year and a half, starting the week 4/27/2015. Over the past 4 months, it has rallied from the low $90s to where we are today. What is significant is not only are we finally seeing a golden cross on both the daily and weekly charts (where the 50dma crosses above the 200dma) but this is also...

MichaelGLamothe

FB is attempting to break out of a base on base pattern this week. After reporting earnings the week of 7/25, it spent the past month consolidating on low volume and within a tight trading range. Compare the length and depth of the current base to that of the immediate prior base. Note that the current base is both shorter and shallower. This is exactly what...

MichaelGLamothe

After reporting earnings last week, AMBA ran down to and successfully tested the ascending trend line that served as resistance from 6/9 - 8/12. For now it is continuing to show support at these levels. It will be encouraging to see it close above its 10ema today or within the next day or two.

MichaelGLamothe

We'll see if this drop in $AMBA post earnings turns out to be a shakeout or something more serious. So far it has sliced through both its 10ema and 21ema. It has held the 21ema since 7/6. I think its worth noting that $AMBA traded straight down to the prior ascending trend line that served as resistance from 6/9 - 8/12 and then bounced off of it. This line...

MichaelGLamothe

It's been about 2 months since ACIA has consolidated or even taken a breath. In that time it has more than doubled! Within the current consolidation, ACIA is giving us a possible way in with a break above the blue descending trend line drawn on the chart and a break above $116.85. For now, it has held the 10ema so on a breakout, I'd use that as my sell guide...

MichaelGLamothe

Unless if we have a major rally in the next 45 minutes, the S&P 500 will have its 6th distribution day, 3 of which have occurred over the past 2 weeks. If we see one more distribution day within the next few sessions, we'll have a "distribution cluster" which is 4 or more distribution days within a 2 week period. Part of what makes me feel as though this is...

MichaelGLamothe

Last week YELP approached and held the low of its gap up after reporting earnings on 8/10. It has traded tightly and on low volume since reporting earnings. It now seems poised to breakout again as it approaches fresh 52wk highs.

MichaelGLamothe

EBAY is presently setting up in a flag with an advanced pivot right around 31.33. On the daily chart, a descending trend line can be drawn connecting the HOD from 7/27, 8/11, yesterday and today. After a huge breakaway gap on earnings, it has quietly consolidated on light volume. Last week it caught support at the 21ema and has bounced off of it. EBAY is...

MichaelGLamothe

This past Wednesday was the first sign of potential weakness $GLD has seen since gapping up off the 50dma on 6/24. On Wednesday $GLD stalled, moving higher on the day but closing in the lower half of its trading range. Some were saying it was extended...I agree that it is BUT Wednesday's stalling wasn't enough to convince me that the move was over. Thursday's...

MichaelGLamothe

GLD bounced off the 50dma last week on low volume, gapped last Friday above resistance, spent the rest of this week building a floor above resistance, and finally confirmed the bullish continuation today.

MichaelGLamothe

SPY bounced hard last week off of long term support from October 2014 and August 2015 (see weekly chart). In the shorter term SPY is encountering resistance at the 10ema

MichaelGLamothe

$SPY is presently testing long term support. So far intra-day it has undercut the August low of 182.40 but as of this writing has rebounded back above that level. Additionally, it is also flirting with the October 2014 lows of 181.92. The more a support level is tested, the more likely it is to break. Think of it like taking a sledge hammer to a floor. You...