Yesterday we saw a big gap up in the major indices that after some sideways movement was largely faded in the afternoon. This morning we are looking at a pretty big gap down after that. At the moment it looks like we could see a 3/8/20 cross down today on the SPY, which would bring some key support areas into play that would need to hold over the rest of the month. It is worth noting that this month is also the end of the quarter, and funds may be forced into some end of quarter rebalance selling as they likely have to sell stocks and buy bonds to keep their funds in balance. We saw the effect of this at the end of the first quarter when funds had to buy stocks and it started the current rally. If we do see more selling into month end, we really need to keep an eye on the SPY support levels at the sma200 and the $298-300 price level. If those don't hold we could see some deeper pullback.
Yesterday we were able to take some nice profits in LPCN and AZN, and today I may look to add back the AZN that I sold. Here is a short list of names that I will be watching today :
TLRY is a cannabis name that started to move yesterday and gave up most of its gains, but it's holding a nice anchored vwap level and anchored volume shelf. I like this on a red to green move for another test of $9 and possible push higher
SPCE I like on a fill of the gap below and then push back up through the $16 level for a long trade with a target of $18 or higher
CODX gave a fantastic day trade in the room yesterday and looks to be setting up for a soft open. I like this on a red to green move for a push up to $20 or higher
CARG I like on a pullback to the sma20 for a long entry for a push up to the sma200 above