Market futures are up this morning before the open and there is a lot of excitement on CNBC. Cramer was telling people to buy big cap tech stocks last week. I want to show you four charts this week and they are either going to have big rallies or provide us with huge lessons on the state of the market. Take a look at these four charts, because they all have bullish looking charts – but are they really?
All four of these stocks went up Friday to close near short-term resistance points on triangle patterns. At first glance they look like they should breakout and run. They have simple entry points where one could buy now and put a stop below the low of last week and I have no doubt that there are people out there who looked for stocks to buy inside the Nasdaq 100 this weekend and are ready to pull the trigger.
The charts say these stocks should breakout this week and rally, but will they? If this was early August I’d say yes! But even though the market went up Friday and is gapping up this morning I still believe that the overall trend is actually sideways to down now for the stock market for reasons I wrote about before in a post. What these stocks do this week will be interesting to see – will if they confirm that trend or rocket up?
-Mike
