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Swing Trade Idea – May 14, 2020

Market View

Ahead of the USA open the USA futures are negative. Europe and Asia are both strongly negative, bond yields are falling and flatter and the USD is positive. This is a setup for a strong move down should support break at SPX 2800.  The breadth of the market is deteriorating rapidly, the bullish percentage of the S&P500 dropped to 48% on Wed.  Financials are extremely weak as are industrials.  The technology sector and specifically the FANG stocks have been carrying the S&P index as cyclicals are being sold.

Premarket names:

CSCO earnings beat[Rev -7.6% Y-Y] RVLV Earnings WIX Earnings

Stock Idea: IWM Short

IWM is the weakest of the USA indices and weighted towards smaller financials and economically sensitive companies.  IWM is firmly in a bear market unlike the large caps. Uptrend support has broken, one could look for bounces to enter short positions. 123.66 is the 38.2% Fib and was the support level and now possibly resistance.