ONE EGG Scan for April 6th

The buyers on Thursday had little to no conviction heading into the long weekend. The jobs report on Friday disappointed and the response may be muted by the long weekend, but the futures are pointing lower. I expect a negative reaction to start the day, but the out come is still going to be what to watch after the first 30-60 minutes of trading. NASDAQ looks to be the weakest link with both biotech and semiconductors struggling. Break support and the downside gains control at least for the near term.

Result for the Daily EGG Scan: 

Leadership outlook…

YINN – China’s hope of stimulus pushed the country higher… watch this is a volatile trend, but it has moved up nicely short term.¬†Watch for test of the move higher

RUSL РRussia is moving higher, but the volatility is a challenge for many. Buyers put in effort to break higher technically. Working so far on the upside. Watch for test of the move and adjust your stops.

EDC – Emerging markets have benefited from the weaker dollar and positive global money rotation. Moved through the first level of resistance and now needs to clear the $25.60 mark as RSI looks good near term.

SOXS – Watching the¬†downside as¬†play. Needs to clear resistance and follow through…¬†$12.25 entry is of interest as trade opportunity.

SPY – Support is $204.50 and a break lower is going to bring the sellers into play. I like the short trade if the break occurs with some volume favoring the sell side. SPXS.

Possible EGG Position:

No direction lasting longer than a day currently, but I am still leaning towards the downside as trade opportunity. SOXS, NUGT, SPXS and other show some promise, but we need to follow through otherwise we just chop around. Patience as it unfolds.