IMPORTANT NOTE: Due to popular demand, I'm going to open up a TA March Madness Challenge. Details will be discussed briefly tomorrow for those that are interested. I'll be posting the links/passwords to get registered this evening. Also, if you have not printed a bracket, CLICK HERE.

UPDATE

You are invited to join my online NCAA March Madness bracket
group! To accept this invitation and join the group, click
the link below (or cut and paste the link into your
browser's address bar). You'll be asked to enter the group's
password before you can join. The group password is included
below.

http://oam.mayhem.cbssports.com/e?ttag=11_cbsinv

Our Group password is: alpha

NOTE: Make sure you create an account with CBS, then join the group. We will be offering prizes for the top three finishers.

For bullish watchlist, CLICK HERE. 

For bearish watchlist, CLICK HERE. 

CLICK HERE for the point and figure version of the bullish watchlist.  

CLICK HERE for the point and figure version of the bearish watchlist. 

$10 Darlings 

"Thanks to a reader who suggested that I look at the phenomenon that we had as of Friday's close, in which Thursday and Friday's action were inside Wednesday's high and low. This double inside day represents a sizable short-term period of consolidation. Interestingly, the pattern has been bullish since 1990 and more specifically from 2004 to the present, where we see favorable returns five days out.

The important pattern, however, is that the double inside day appears to be bullish during bull markets and bearish during bear markets (as in 2000-2002). When you think about it, this makes some sense. By definition, a market's directional activity does not occur during consolidation periods. It's what happens afterward that sets the trend. A market tells you quite a bit by how it behaves in the face of consolidation. This itself might be a useful market indicator."

Brett Steenbarger, circa 2006

http://traderfeed.blogspot.com/2006/06/double-inside-days.html

Also, here are a few stocks on my radar tomorrow. I'm too lazy to post charts one by one. So here is a ghetto screenshot and a link.

  http://finviz.com/screener.ashx?v=211&t=LEE,MELA,HIMX,HAFC,FTK,GTN,HLIT,FORM,GA,MSO,MCZ

Earlier this afternoon, the S&P traded to the lower end of its trading range, visiting Wednesday's lows, and trading right back to the underside of this consolidation pattern we've been following. 1310 was the level we were watching this afternoon, and not surprisingly, prices went out at 1310.

Small Caps and tech were very, very heavy this afternoon. Semiconductors, via the $SOX, saw a significant breakdown, which led to a lot of the saggy price action in tech stocks.

The $BKX, XHB, $DJT, and a few other sectors are on the verge of breakdowns as well, which we'll be watching tomorrow morning.

Crude oil, which has put equities under pressure, stalled around a longer term retracement level. It's possible prices might consolidate here for a short period, which might allow stocks to travel back to the upper end of their range. 

Also, speaking of topping patterns, Copper prices, which were resilient last week, finally gave it up and caught up with the weakness in equities. Keep an eye on this chart, which is looking toppy.

Until we trade away from this range, keep things light and tight. We'll do more follow up work on these signals tomorrow morning.

For bullish watchlist, CLICK HERE. added: VECO,ASIA,RBCN,PLCM,EMC

For bearish watchlist, CLICK HERE. 

CLICK HERE for the point and figure version of the bullish watchlist.  

CLICK HERE for the point and figure version of the bearish watchlist. 

$10 Darlings added: PLM,LVLT,ABAT,BIOF,HAFC,PLG,MCOX,BLTI

CLICK HERE for bearish set-ups

A quick follow up to yesterday's market set-up, which was to see stocks trade to the upper end of their developing range. I highlighted the following range last night...

As of today's rally, prices have filled the upper end of this range, trading back up to 1330. Equities are discounting a better than expected labor report tomorrow. After today's trend in stocks, look for a consolidation day tomorrow, which should open the door to several great set-ups in individual stocks.

As mentioned this afternoon on TA Live, I'm hoping we get one last pullback early next week. If this happens, it will provide a great opportunity to enter several long positions ahead of the break away from this range. 

Here is an updated list, as of this evening, of stocks to watch for both long and short set-ups.

For bullish watchlist, CLICK HERE. added: HGSI,BAC,SOHU,SPRD,BRCD,CAVM,MMR,STEC,SHO,ASIA,TQNT

For bearish watchlist, CLICK HERE. 

CLICK HERE for the point and figure version of the bullish watchlist.  

CLICK HERE for the point and figure version of the bearish watchlist. 

$10 Darlings added: RAD,VVTV,BEE,CBK,FCH,HAFC,YMI,GSAT,CPST,HDY,CBZ