Now What?
Followthrough Day Triggered
But it is important to understand that even if the regime changes bullish, you can get chopped up.
Things need to build and set up properly from here, and the best entries often come in the weeks after a big burst up. Those stocks that broke out of their bases, need to continue hold above their bases and start trending as confirmation of strength.
If you have been patient in this correction aligned correctly, don’t lose your patience yet. Not completely out of the woods, but a nice start.
The Small Cap RS Divergence
That I highlighted from TSF - Analytics, in Sunday’s market analysis was a nice bullish clue.
As well as the A/D-line divergence that we saw, with the market putting in lower lows, while A/D-line was putting in higher lows.
But we also saw some bearish signs in the analysis looking at positioning, this is still not the cleanest of setups — which means we need bullish followthrough and continued constructive price action from here.
Today We Will Do Two Things
Look at an interesting entry tactic that is very useful on weakness in strong stocks. And look at a couple of setups I see.
Most stocks need to build, but those that lead this move up are already resting, and might become an interesting play from here.
Explore TSF - Analytics
