What's Next?

Last week we discussed about market correction and we did see some correction in Nasdaq and small cap stocks. S&P 500 held relatively well and DOW was up for the week. Looks like market is reducing the risk. Gold, Silver and Amazon (AMZN) played exactly as per our expectations.


Nasdaq is breaking down; I have highlighted the next stop on the chart. You can look at QQQQ (ETF for nasdaq 100 as a short idea).

Russell small cap index saw significant correction; looks like next stop will be 50 DMA. You can look at IWM as short idea (ETF for small cap index) or TWM as a long idea (inverse leveraged small cap index ETF).

S&P 500 held relatively well, next few days of price data will provide further clues. I have highlighted support areas; I will be watching the price action around these support areas.

AMZN Daily: This one is right at 50 DMA, I have highlighted the next likely support areas.

AAPL Daily: This is very close to 50 DMA and support area, if it breaks this support, most likely next stop is 200 DMA and a highlighted trend line.

CRM Daily: I have highlighted the most probable path this will take; it doesn't have to take that path. Chart looks bearish to me and this might be heading lower.

RGLD Weekly: Most probably RGLD is heading towards the highlighted support area.

RSX Daily: No divergences on daily chart but we can see bearish divergences on 60 minute chart (not shown), if it breaks the highlighted support line, likely next stop is 50 DMA (highlighted on chart). This is an aggressive trade but is providing good risk/reward ratio.

GOLD and SILVER is playing as per our expectations.

OIL: I will be cautious with oil, looks like it has formed a terminal wedge (though it is not a clear wedge), if it is wedge, it will head lower in near term.