Open Interest: for this Friday 6/30/17, PCR is at 3.774 (DN from 3.804) and for next week PCR is at 2.830, these PCRs are stable and with no inversions we must assume the shape of the short and long term razz should play out. Both are looking lower: into July 22nd short term and August expiration, long term.
Moores’ 2C-P is quite high, currently at 98.7, this needs a reset at least to 70 to support a solid advance in the markets.
MOC, around $1 billion sell side yesterday. Adding more elements to the downside pressure.
EW:
Market closed under the 2425 level. Further weakness under 2395 during the next days will invalidate any potential bullish inclination we still could have. I am not surprised, 2458 was a hard area to take, as we mentioned, and from June 4th- June 8th, we recommended stops for shorts at 2460 and SPX was trading at 2440 so I am not impressed with the chest thumps of the bears. Hope they get their pullback.
Once the SPX breaks 2395 we will put our initial level to watch at 2303 with next level that must hold at 2233.4.
Now that most of the QQQ stocks have broken support we will update some potential targets, I will update in the order they break support areas, won’t generalize:
Blue lines are 1% extensions:
FB: slightly below .618, but not much, so won’t update yet.
NVDA: under 142.11 ABC updated target projects to 135.49 (link), close to previous 3.618 support, re-upside at a minimum should be 155.
AAPL: Still holding the previous 4.236 extension, would not be aggressive on the short side while this line holds. Experience tell us not to do it.
AMD: Nothing broken yet
NFLX: under 147.30 ABC updated target projects to 141.10 with potential for 127.23. NFLX is the most compromised of the stocks until now, can make a case for 5 down (link) that could trigger a 3rd wave down and 3rds on NFLX goes to 2.618 that puts 111.23 in the cards.
AZMN, nothing broken yet.
TSLA, not sure what TSLA is doing, it is an anomaly that has not tried for the 1.764 at 400, updated support is 351.
TNA, still has not broken under 54.25, this still might be a deep wave 2
