SPY | QQQQ | COF | CMG | UNH

SPY - It wasn't a coincidence that SPYs low was exactly 138.00. There is a lot of support at this level; however, there's a lot of resistance above too. If this support level fails, be cautious of your long positions.














QQQQ - also off its lows of the day. Use the trendline as a guide - if it can't hold...look out below.













A few candidates, should the aforementioned trendlines give way and the market decides to head lower...

Capital One (COF)
Chipotle Mexican Grill (CMG)
UnitedHealth Group (UNH)

LEH | CMG

Today's price action was simply obnoxious and it further emphasizes the indecisiveness and unpredictability of this market. We continue to be at a critical juncture for all of the major indices. The S&P, for example, broke out of it's wedge pattern (see yesterday's post) and above its 200 day moving average...and then returned to where it started, leaving yesterday's questions still unanswered. In times like these I recommend keeping several longs and shorts on the radar instead of trying to figure out whether you're bearish/bullish - when the market itself hasn't even decided. Here are two suggestions, one of each.

On the bearish side: LEH
I'd like to see a bit more of a confirmation but it looks like this trendline might not be able to hold any longer.













On the bullish side: CMG
Support at 92 - wait for a pullback though, I caught this one about three days too late and it is now overbought.












Overall, I'm seeing a lot of overbought stocks and I'm still waiting for a pullback and/or better entry point. CLICK FOR MORE CHARTS.