Yesterday we saw the market bounce on light volume, and that looks like it may try to continue today as we are pointing towards a gap up open. We do have some potential resistance not far above on the SPY chart with the sma20 at 342.74 It will be important to see how the SPY reacts on a test of that level if it sets up. It is also worth noting that we have the FOMC meeting starting today and a rate decision and press conference tomorrow afternoon, which always has the potential to move the market in either direction. The VIX eased yesterday, but for now it is holding its daily sma20 which will be an important level to watch. Overall the market is in a very tricky place where we have potential bear flags setting up but not breaking down as of yet. This has us pretty cautious on new swings until the market direction becomes clearer. Here are a few names that we will be watching today:
SAVE is one of many airlines that look ready for a potential move higher. It has a great looking TTM Squeeze and a nice shelf of anchored volume by price. I like the risk reward here on a break of $18 for a push up to test $20
ADVM is setting up for a potential 3/8/20 cross in a TTM Squeeze. I like this over $13 for a push up to $15 or higher
CENX I like on a soft open and red to green move for a push up to test yesterday's highs and possibly break out of this flag, The weekly chart here is a beautiful flag.
BBBY is reclaiming a key anchored vwap level and building a nice shelf of anchored volume by price. I like this on a soft open that goes red to green for a push up to fill the gap at 14.25
LYFT has a sloppy inverted head and shoulders in a TTM Squeeze and reclaimed a key anchored vwap level at 31.30 I like this on a pullback to that vwap level for a swing or on a break of $32 for a day trade
MLCO is consolidating nicely in a TTM Squeeze and building a nice base of volume in the mid $19s. I like this over 19.50 for a test of $20 and possible break up to the $23 area