The momentum in the NQ is obvious. The earnings and the reaction of MSFT and FB shows that there is still great interest in buying these stocks at these levels. I am looking at the SMH as it seems to reached a high. Lets see how it acts and if the NQ is even affected. The NQ has already reached the 2nd target I posted last night. I have higher targets posted this mornings which might be an area for a contra type trade. The ES seems like its been dragged up and still has not taken out the ATH intraday of 2940 in the SPX. My guess is it will. Interesting to note that the FXI and EEM have not been participating in this last leg up.
TELLS
IWM – looks lower. It got some legs above 158.10 are and topped out at 158.69. This can be a problem if it breaks the 157 area ( 157.37)
CL and XLE – crude high 66.60 and support 65 area. XLE also like IWM could not hold higher. Now the 68.61-80 is res and it needs to hold the 67 area.
XLF – has been hanging near some critical highs and not backing off. 29.52 upside would bring it to a test of the 28.35 area. If it fails it would need to hold 26.9.
XLV – no longer oversold on RSI. had an inside day yesterday
IBB – similar to XLV
SMH- looking toppy in short term
XLK – monster . similar to SMH
GOOD LUCK AND BE CAREFUL WITH ENTRIES.. DON’T FORCE TRADES
BalsamTrades 