#IBDpartner

We spent a lot of time scanning through stocks on our MarketSmith platform and we saw an interesting pattern.    Leading stocks have broken major moving averages but now are sitting on/approaching major horizontal support — basically an overshoot into support.

FFTY huge monthly break of 20sma but now sitting on the important 30 level.   Even if you don’t trade FFTY add it to your radar as a tell of momentum stocks (with IBD50 often being a leading indicator of growth).

Are we all going to be shopping at Walmart? Is this a sign of what is to come?  Hope not but chart looks great while trending higher near 100.

AAPL earnings out Thursday — so far caught in a box of horizontal price.    This will definitely be a mover and shaker — happy to go light or completely in cash into this event.

IWM another great example of what we are talking about —   we have major break of moving averages but now at horizontal support near 145.

Remember in bear trends support means nothing without confirmation.   It’s not worth trying to bottom pick:  wait for buyers to show up before committing money.    Signs to look for:  a) good news is not sold and more importantly b) bad news is bought.     See you on the streams.