If $TTM triggers, then we would like to hold for a two to three week advance into earnings, which are due in early August. .
If stocks are able to hold above Thursday’s low, we could potentially see a few days of higher prices with a short-term target of the prior swing high in most broad market averages. If the averages stall at the prior high, that would suggest the market will remain range bound into earnings.
If Thursday’s low does not hold, then the market could be in for some more ugly selling. Earnings season will hopefully produce a few buyable gap ups to new 52-week highs in A-rated stocks.
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