Range Bound - Week of April 28 to May 2

The Russell 2000 index has been trading between the 100dma and 200dma range. We are in range bound market as long as stocks roam around this area. Both market leaders IWM and QQQ are forming a potential head & shoulder topping pattern. A breach below $84.50 for QQQ could give us a good short signal. My goal is to find stocks that are at support or resistance, and then sell / buy based on market directions. Next week, I am focusing on finding stocks at resistance, especially those with double whammy resistance.

IWM:

QQQ:

Auto Sector:

GM (General Motors Company)

printed a big red candle after earnings on April 24th. It closed at $33.72 on Friday, just below the horizontal resistance and the 20dma (double whammy) around $34. A drop below Friday's low ($33.55) could trigger a fall to the next support at $31.

System Software Sector:

ADSK (Autodesk Inc)

dropped below the 17dma. The bounce created last week was a perfect bull trap. It is likely that the 17dma will continue to put a top on the stock price till it finds support at around $42.60.

Financials:  

ETFC (E* Trade Financials)

flirted with the green trend line and dotted horizontal resistance (double whammy) after earnings on April 23rd. The latest two red hanging man candles near $23 could be the retest before it plummets to $19.60, or 12% below Friday's close $22.4.  Ideally, we want to see a bounce on Monday AM to $22.9ish for good short entry. Pay attention to the latest volume profile.

Thanks for reading, and have a good week.