A Beacon of Light in a Dark Tape

Two hefty buyout premiums this morning for biotech LOXO and software play LXFT are helping the bull case for a relief rally after last Friday's impressive rally. And when you consider that bears have another golden opportunity after Thursday's selloff to press us lower, the specter of an abrupt rally trapping a majority of traders either short and stubborn or underinvested long seems to be in play at the moment for continuation higher. 

With LXFT getting that software buyout at an elevated premium, the persistent strength in the enterprise segment seems even more pronounced. We all know about names like TEAM by now, beyond the perennial heavyweights int he group like CRM. 

But a name like Everbridge Inc. (EVBG), below on its daily timeframe, is noteworthy for how well it has held up this correction. What you love to see in the SaaS name is that each dip below its 50-day and especially 200-day moving average was rather quickly gobbled up. The stock then based back over its moving averages in a constructive manner, with benign sell volume and price essentially marking time. 

The net result of this price action in a hot sector is that EVBG appears to be coiled--Not unlike an airplane in line on the runway simply ready for the green light to takeoff. Here, the green light would not be an air traffic controller but rather a stronger broad market, permitting it to explode higher as a good chart in a trendy growth segment.