Looking at tons of charts this weekend, there is similar patterns on various charts. The majority of stocks have declined the past 3 days and are nearing support of their previous break out highs. The patterns look to SPX as it has the potential to move to test its August highs, but has resistance above it from its breakout highs which it broke below.

Now if the market is going to bounce, the stocks will have to hold these support levels and break out of the resistance. The danger to getting long these stocks, is if selling pressure picks up and these support levels break selling will quick, since now the longs from the breakout highs are underwater and the longs that were holding from the previous breakout highs are underwater. What the support levels do provide is a easy stop loss.

On the opposite side of the trade, many stocks will begin to test their break out highs from below. This level many provide strong resistance and may be a good entry short.

The market is definitely at a turning point. Here are some stocks to play both sides:
*These are not recommendations or suggested trades. They are ideas, please seek professional advice before placing any trade and trade at your risk. All trading involves high risk; past performance is not necessarily indicative of future results.


Sorry for not having the charts. Stockcharts.com is down this morning.