Negotiate This Chart for the Holidays

After earnings this morning, Priceline is gapping back down below its prior breakout level from well-defined resistance, roughly $1,395. This type of price action now sets up some goalposts for bulls and bears, where bulls likely need price back over that level to resume the bull run, while bears can place cover-stops above it while shooting for some downside target, such as the 50-day moving average (dark blue line) and the $1,300 level.

Like other leaders in the market, such as AMZN FB GOOGL, PCLN has been part of an elite group of late, even as other parts of the market struggled on a relative and absolute basis. 

With the holidays rapidly approaching, though, we should see if the strength is reversed, especially with the earnings sell-off. 

In other parts of the market, financials are giving up a good deal of gains from Friday in the XLF ETF, while regional banks are faring a bit better. 

We have been short REITs inside Market Chess Subscription Services since Friday, as well as short bonds for a while now, looking to see if the thesis for the market forcing the Fed's hand at raising plays out. Historically, the Fed is always behind the curve. So the action in TLT may be the market getting out in front of a rate hike.