Markets Exhale After Big Gains

DJIA - 48.53, -0.38% SP500 - 2.65, -0.19% NASDAQ Comp. - 1.36, -0.06% Russell 2000 + 1.62, +0.23% The broad market took a healthy breathier today after yesterday’s 3% plus gains. The Russell 2000 finished positive for the day, while the other three indices pulled back modestly. A number of stocks we are watching continued to move higher. We also saw the Bearish Harami and potential (partial pattern) Evening Star patterns on a number of charts today. This is not surprising with the market pausing. The job of the trader is to determine if these patterns are simply the “pause that refreshes” or if they are the beginning of a more significant pull back. So be on alert to see if the bearish Harami confirms or the evening star patterns complete. The market is in the “zone or area” of resistance and in an intermediate term sideways trend so stay focused. Dave's Insight: The market doesn't know what you're thinking. The sad part is that if it did, it would'nt care. Don't trade your thoughts, trade the Chart Signals. Today’s Action AAPL – I had commented on the Inverse Head & Shoulder pattern on AAPL in my audio comments on March 12 (the stock was 127) and gave the price target of 149 on completion of a successful breakout at 132. I mentioned the April 135 Call which at the time was 4.30. Yesterday, when AAPL reached 149, that same April 135 call hit 15.47 a gain of $11.17 or 259%. RIMM reported earnings after the close today and traded over 10 million shares in the after-market gaining $5 plus. This is a very modest move since the Call/Put Straddle was priced near 16 before today’s close. Stocks Moving Higher EBAY, EXPE, EWZ, FSLR, URBN, WYNN, X Unconfirmed Bearish Haramis AAPL, AFL, FXI, ISRG, VRTX PCLN also a Hanging Man SNDK also a Shooting Star Potential (Incomplete) Evening Star – look for potential completion tomorrow AMZN, DIA, IWM, IYR, MDY, QQQQ, SPY Intermediate Term Market Trend: Neutral Short Term Market Trend: Up