Well, that was an interesting week. It started out bad, then got worse, then furiously rallied.
That rally made the bulls feel better, but it was ominous: V-shaped bounces usually fail at resistance before falling back. That says the S&P may test 1800 again.
The market saw a lot of high-flier breakdowns. Netflix (NASDAQ:NFLX) was one of them, but I wouldn’t buy quite yet. Instead, wait for it to sink to support, then take a stab at it.
Tesla Motors (NASDAQ:TSLA) was another casualty, but the seeds of its decline were sown earlier this year with that large Head & Shoulders. Once it broke both the neckline and uptrend, it was time to call it a day. It will come back at some point, but I’d look elsewhere for buys.
Back next week to see if the bear growls again.