Hold The Phone
I am a bit behind on my market review today, so I'll highlight today's action with a few bullet points:
- The S&P rebounded very nicely off of its upward trendline and 50 day MA, both of which have acted as key support throughout this uptrend.
- Today's price/volume action was enough to move IBD's Big Picture back into Confirmed Uptrend. However, I'm still approaching with caution.
- As you can see on the chart below, tomorrow as well as next week's action will be pivotal to further determine the direction of the overall market. A break and hold above the resistance trend tomorrow or early next week could get things moving again.
- The bounce we saw last Thursday and Friday is almost identical to what we could see if we move higher tomorrow. If we do move higher tomorrow, I would like to see that move confirmed by constructive action next week before showing any aggression.
A Few Breakouts To Keep An Eye On
While a large majority of leaders found support at key levels on average or below average volume, there were some good looking stocks breaking out on huge volume:
- PVH Corp (PVH): 10% gap up on volume that was 250% above its 50 day average. PVH is just shy of a flat base pivot around 125.60.
- Restoration Hardware (RH): November '13 IPO emerging out of a tight bull flag pattern on nice volume. Relative Strength rating of 97 is very positive.
- Union First Market Bancshares (UBSH): Downside reversal from 5/10 breakout, but managed to keep extremely tight throughout a choppy market. Nice upside reversal on 6/10 followed by some strong up volume. Would like to see strong volume push it over the 21.00 range.
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