Intraday Comment, Resistance Levels are Key

Intraday Comment:

The big players do not like a negative start to any New Year, and this is no exception.  We know that the Markets are all at longer term resistance, this does play a role in immediate sentiment, but the pullback that has already occurred on Thursday could cause the big houses who want to see the market at least look stable to buy it intraday.  They could even do it aggressively enough to prompt a rally.  However, if the market closes Friday's session anywhere near Thursday's intraday levels the tests of longer term resistance will be official and resistance will have held.  The Market, as a result, does not need to pull back much more in order for the longer term charts to hold their bearish tone.  The dynamics of the first few days of the year may prevent aggressive declines from being realized immediately, but the technicals will guide us either way.  Right now longer term resistance is holding, midterm reversals have happened, but the market also defined an intraday bounce point.  Although the market is absolutely capable of bouncing intraday the bearish tone based on tests of longer term resistance has not gone away.

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In addition to the markets testing longer term resistance, here are a handful of stocks which are also testing their respective longer term resistance levels: 

Stocks to Watch:

V

Testing longer term resistance

X

Testing longer term resistance

CAT

Testing longer term resistance

KO

Testing longer term resistance

DIA

Testing longer term resistance

IBM

Testing longer term resistance

No other stocks appeared prominently on my general filter this morning, but that can change as the day goes by.  You can conduct the same filter yourself as well, and you should because I will not be sending another email alert about this.  In order to find stocks that look interesting because they are testing longer term support or resistance do this.

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