The bull reluctant to let the market down

Last Friday, Dow Jones Industrial Averages closed down 8.83 points, despite the higher open. It was the largest volume day almost triple the previous high volume days since the index broke above 19,000. The event raises a yellow flag as reversal happens under high volume.

Although the alarm indicates negative sentiment, Dow Jones Industrial Averages Futures show positive 36 points before market open and negate the bearish sentiment at least for now.

Technical Analysis

Dow Jones Industrial Averages (INDU)

Lower close on Friday, and high volume sound alarmed for the bull. There is a possibility the index will enter correction this week with 19,200 – 19,400 as the target. Depend on the daily close, a close lower than 19,748 is confirmation of the initial bearish trend.

Tesla Motors (TSLA)

TSLA has been under bearish trend since it closes lower than the daily SMA 200 and moving inside the bearish channel. The price encounters its SMA 100 and might bounce lower.

United Parcel Service (UPS)

Correction happened in UPS, the share price moving lower and the nearest support is the support area between $112 – $115. If a bullish pattern emerges at the support area, then the bull trader can take this as an opportunity to enter more long position.

Visa Inc (V)

Visa drop sharply below its daily SMA 200, initially it was able to maintain position above the daily SMA 200, but finally, the bear could push the price lower and form a bearish candlestick close back under the averages.

$75 is the target of the bearish move, if it can close lower than July low $73.25 then the sell-off will accelerate.

Other Watchlist

ORCL – slammed below its daily SMA 200, bearish sign and might continue lower.

COST – September gap filled, the share price might reverse at current level.

POT – Lower close below $18.50 S-R level, it might continue toward the daily SMA 200