S&P Approaches a Key Level. So Does Tesla

Struggling for traction, can the bulls prove that they have control?

Technical Edge — 

• NYSE Breadth: 58.8% Upside Volume 

• NASDAQ Breadth: 40.5% Upside Volume 

Yesterday’s action was traction-less in the overall indices, but it allowed us to achieve several price targets in our holdings below, namely TGT, ACB and VRTX. 

Hitting a series of price targets is always nice. There’s the obvious money-in-our-pocket part, but it allows us to reduce stress by moving to break-even stops and re-evaluate the market from a more fresh perspective. 

Game Plan 

Today we’re going to see how much strength the market really has. Specifically, can the S&P power through yesterday’s high and a key area? 

Everyone wants to be excited and wants to see the rally hold in earnest. I think it’s important to remember that it’s a “prove-it” market for the bulls. They must prove they have momentum right now, because largely speaking, we’re still in a downtrend. 

S&P 500 — ES and SPY, Bonds, TSLA and COP

The ES has been frustrating traders yesterday and today — aka me — because it keeps making the moves we’re looking for but doing so during Globex. 

Yesterday it approached the 4490 to 4500 zone we were looking for, then it faded. Now it’s pushing higher again but doing so during Globex. 

Here’s what we’re looking for: I want to see how the ES handles yesterday’s high of 4484.25. Just above that is our 4490 to 4500 zone, which has the 200-day and 21-day moving averages, as well as the 50% retracement. 

Then what?