Unsaturated Markets for Saturated Fat

U.S. equities are staging a mild bounce so far today, as the Nasdaq stocks are attempting to stabilize the atmosphere after yesterday's drubbing. There are quite a few charts which are largely still intact as quality long setups which I will update for Members in my usual Midday Video in a bit.

However, the true test of those setups will be whether the broad market can regain its footing to the point where those setups are permitted to broadly break higher and sustain upside moves beyond a few hours, if that.

Of course, there is also one eye on Brazil and the damage suffered today with the exogenous event and subsequent shock in that country's market. EWZ (Brazil country ETF) appears to be holding the critical $32 level for now, but I suspect the jury is still out until next week as to whether bulls continue to defend it and turn Brazilian stocks back higher. 

As for stocks here, Shake Shack has quietly been outperforming this week, with an upgrade this morning not hurting the cause, either. HABT and RRGB have better overall charts right now. But it is tough to deny the improvement we are seeing in SHAK, below on the daily timeframe as it breaks a bull flag (arrows) higher.

Moreover, the argument that the burger plays are operating in a saturated market may be exaggerated, as the stock market is not yet buying into that thesis based on the action. 

Longer-term, SHAK will need to clear $40 again, preferably with strong buy volume, to mount a new bull run. But in these types of markets we want to pay close attention to any stocks exuding this type of relative strength.