The major indexes have started the week off on a positive note Monday morning. Heres a list of charts that Brean Capital technical analyst Frank Longman is watching this week.
For the Daily SP500 E-mini, Longman believes theres an inclination to test the primary uptrend at 2007 before a new high. He is predicting a bounce off of that trend line on the first test.
Continue Reading Below
Media stocks were hit hard last week, and Longman is looking for the group to test long-term support levels. The damage thus far has us thinking that a correction of the uptrend that began at 2011s lows has begun and weve labeled the 38% retracement versus that low major support, he explains.
Despite recent weakness, Longman points out that the long-term bullish trend in biotech remains intact. He believes that a retracement of another 11 percent is in store for the iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) before the sector resumes its uptrend.
Despite recent pressure, its not all bad news for the tech sector from a technical perspective. Longman still sees technical strength in the charts of Arista Networks Inc (NYSE:ANET), F5 Networks Inc (NASDAQ:FFIV), Mobileye NV (NYSE:MBLY) and Zebra Technologies Corp (NASDAQ:ZBRA).
Longman recommends taking profits on the SPDR S&P Regional Banking ETF (NYSE:KRE) after the ETF recently broke below its support line.
Longman also notes that weakness in regional banks should have owners of the Financial Select Sector SPDR ETF (NYSE:XLF) watching closely for a similar technical breakdown.
Finally, while Longman believes that WTI oil prices are still entrenched in a long-term downtrend, he feels a short position at this juncture would be more trouble than its worth. He predicts a short squeeze could be coming soon for crude oil based on comparisons to the price action of gold and copper back in 2013.
2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.