13Mar1:56 pmEST

Tough Resistance After a Straight-Line Move

The small cap-dominated Russell 2000 Index, using its actively-traded IWM ETF (below, on the daily timeframe) as a proxy, is running into its prior January highs after a virtual straight-line move higher since the beginning of this month. With this in mind, some near-term backing and filling ought to be expected from most parts of the market, especially when we consider the likes of AMZN and the general Nasdaq also being rather extended and seemingly due for a respite. 

Therefore, I reduced some long exposure today inside Market Chess Subscription Services, but am also careful not to lurch towards the bear case too soon, either.

Instead, I want to see if stalwarts like GRUB TWLO can now reset after brilliant rallies and set up lower risk long entires. Similar comments apply to the likes of names we played of late, such as CREE RPD ZG. 

It is also interesting to note the improvement and strength in department store Macy's stock, as one of our Members astutely noted earlier. Macy's was seemingly on the doorstep of going to zero for a good while. But it is now actually sporting a clean and improving daily chart, one which is hard not to be bullish on as long as it holds above $28 now. 

Stare at Pinched Lululemons ... Stock Market Recap 03/13/18 ...


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