Keep Moving Like a Shark

Into the morning weakness, we covered a piece of an Under Armor short for discipline inside Market Chess Subscription Services. We have shorted UA successfully several times in recent weeks and even months, as the leading issue is now sporting a confirmed head and shoulders topping formation after a strong, prior multi-year advance. As long as UA remains under $93, I suspect a move down to the low-$70s is on the table. 

On the updated daily chart, below, note the highlighted top, as the recent bounce proved to be a weak one, as buyers failed to muster the strength to even remount the 200-day moving average, which would have been a modest accomplishment, at best.

Also note the newfound weakness in Nike, too, another multi-year winner in the same space now showing its age, perhaps.  

As for the market at-large, it is hard not to think dip-buyers will give it another shot today, given their overall success the last few year. Still, the thing about chart patterns and markets like these is that they are constantly changing and on the move, like a shark.

So we, too, need to stay on the move with them because just when it seems as though the market is beholden to a certain pattern it tends to change character.