Markets Continue Positive Trend as Banks Bounce Back

Futures are up 2-3 handles as it was a pretty quiet overnight session. The European Central Bank decided this morning to leave its interest rates unchanged. They used their last meeting to talk down the Euro a bit.

It was announced at 8:30 a.m. today that weekly jobless claims were lower than expected — 340,000 versus the expected figure of 355,000. That is a slight dip from last week’s 344,000 claims. The Nonfarm Payrolls (NFP) will be released tomorrow.

After two weeks of volatility, the market is continuing its positive trend, with money rotating amongst sectors with some specific set-ups.

The S&P 500 Index (SPX) faces resistance at $1545 and then $1550, and then $1576 is around 2 percent away.

Support levels stand at $1538 and then $1530.

Market Studies founder and CEO Tom DeMark did come out and said $1567 will be the S&P 500’s high, but he also came out in January and said that the S&P would push through $1474, touch $1500 then correct around 5 percent.

It’s best not to have opinions right now, as the market overall has been very tradable, with times to take off some risk and times to add it back. Traders don’t have to be “all in” or “all out,” like another market personality stated to be “all out” about two weeks ago.

Anyway, there’s a lot of mixed action across the board — especially in the tech sector.

Google (NASDAQ:GOOG) took the day off yesterday but held the prior gap. Now, $828.81 is the pivot support and the 8-day moving average is $816.

LinkedIn (NYSE:LNKD) took two days off but holding above all moving averages. It was upgraded by Merill Lynch today and it still looks good.

Netflix (NASDAQ:NFLX) has been out of play a few days as moving averages play catch up. In order to keep current composure, NFLX needs to stay above $175ish. Traders might jump on it if it can get above $186 with authority and then above $192.25.

Amazon (NASDAQ:AMZN) was weaker yesterday but still above $270, which is constructive.

Yahoo! (NASDAQ:YHOO) needs a break after another spirited move above its recent $21.45 pivot.

EBay (NASDAQ:EBAY) flashed a warning signal on Tuesday, then got hit yesterday, and now $53 is the bigger support.

Intel (NASDAQ:INTC) had a spirited move though the $21 downtrend and is filling a gap from last quarters’ earnings, which gets filled at $22.11.

Microsoft (NASDAQ:MSFT) got choppy on the news of the EU sanction. I sold it. Maybe it holds and goes.

Hewlitt Packard (NASDAQ:HPQ) has been on a tear, if you enjoyed the run. I think this is a time to trim and trail

Facebook (NASDAQ:FB) still can’t get above $28.20 with authority. They have a conference at 1 p.m. today. Maybe it’s good that they didn’t run it into the event to be sold, so perhaps the conference could become a catalyst.

Apple (NASDAQ:AAPL) bounced hard on Tuesday, then was rejected at $435, the prior breakdown. It didn’t show much commitment yesterday, and now the support level is $425, then the next one is $420ish. Continue to take this stock day by day.

Banks bounced back well.

JPMorgan (NYSE:JPM) is leading the way back above $50, and has resolved its wedging pattern of the last two weeks with bullish action.

BlackRock (NYSE:BLK) is above its $245 pivot point yesterday and looking compelling moving forward.

Citigroup (NYSE:C) is back to the highs and was a nice trade for some through $43.

With Bank of America (NYSE:BAC) a previous point for re-entry was around $11.30 and now it’s back at $12. I still feel the highs of the year are not in here and BAC could see $14-$16 this year.

Goldman Sachs (NYSE:GS) is not back at its highs but traders are watching it around $155 to see if can continue. The stock has regained the support of its 8- and 21-day moving averages and the year’s high is $159.

Morgan Stanley (NYSE:MS) usually joins the move last. If it can get above and stay above $23, perhaps it can get back on track.

CIT Group (NYSE:CIT) could have a nice upper channel if it can get above $43.20ish. Maybe it will extend.

Casino stocks have been lagging and may play catch-up, now that online gambling was legalized in New Jersey and Macau gaming grew 11.5 percent in February.

Wynn Resorts (NASDAQ:WYNN) is trying to hold its intermediate turn up and needs to get above and stay above $118.75ish.

Las Vegas Sands (NYSE:LVS) has lots of erratic news circling it. This stock started to poke its head up yesterday but it needs to get above $52.35 to continue.

MGM Resorts (NYSE:MGM) is the little casinos stock that sometimes goes as well. It has a tight pattern but if it can reach above $12.40 it could try and rally again.

Refiners are on a tear, Homebuilders bounced back quick and Transports have been leading the way.

Yesterday, the Gold Miners ETF (NYSEArca:GDX) finally reversed with some volume. Traders will see if that continues. It had a big Red Dog reversal at $35.90, it is now above $37.45 and could see $39 at some point.

The SPDR Gold Shares ETF (GLD) had a small reversal. See if it builds, as it needs to get above $154 and then will meet resistance at $155.60. This has a lot to prove.

By Scott Redler and Edward Rueda

Disclosure: Scott Redler is Long: MS, FB, MGM, CIT, NKE, GDX, F, BAC, BA. Short: SPY

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About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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