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Market Takes Aim at Historic Highs Once Again

Scott Redler

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US stock futures are narrowly higher this morning as there are green arrows around the world following solid China trade data. The S&P will have another chance to take out 2013 highs and perhaps the 1576 intraday all-time high today.

Yesterday S&P 500 ETF (SPY) couldn't push through and hold above the $157.20ish pivot. Perhaps the ETF just needs more time after a quick snap back from $153.77, where it was trading Friday morning. It will have another chance today as that's where we are opening. That $157.20 level is the pivot/inflection point where some traders will have to make some tough decisions. Do they get stopped out of shorts there or continue rolling them up? Let's see how the market deals with this pivot today.

On Monday we talked about the possibility of the market forming a right shoulder of a head and shoulders pattern, but the S&P have now penetrated to far in the last two days to make that type of pattern appear valid. We've had some rolling corrections in sectors, with some trading down to their 50-day MAs and breaking accelerated trends, but the overall S&P has been able to hold up as money continues to rotate.

We did get our three-day bounce back in the Homebuilders (XHB), Financials (XLF), Russell 2000 (IWM), and Dow Transports (IYT). Now we need to see if they can break back above recent accelerated trend breaks or if this was a rally to be sold (I did sell my tactical XHB long yesterday).

Yesterday it seemed like mega cap tech got a bid led by Microsoft (MSFT). It appears some investors would rather park their money in highly liquid equities with yield than keep it in cash. MSFT broke out of its months-long range yesterday on good volume. The stock posted an impressive gain of almost 4%. It has regained the support of all key moving averages and cleared some resistance levels on its way up. It's not a spot to chase, but it's nice to see this type of action in a mega-cap stock. Trim and trail. Next resistance $30.40 then $31.75.

Oracle (ORCL) saw a big gap down on March 21 after falling short of earnings expectations then extended to as low as $31.16 before buyers stepped in the next day. The stock has erased all of its losses below the earnings gap, and saw a nice gain of 2% yesterday. The stock briefly entered the earnings gap and some nice follow-through in the next few sessions could help it close part of this gap. Next resistance is the 100-day MA around $34.

Cisco (CSCO) briefly breached its 100-day moving average on Friday but came back above. The stock then joined the broader market rally yesterday and closed the bearish gap from Friday after gaining 2%. Reclaiming the 50-day at $21.10 would add some power to its current rally moving forward. Major support stands at $20.50. The next area of resistance is $21.50 then $22ish.

Intel (INTC) has been lagging for the last few months, then it got a 3.2% push yesterday which brought it back to the top of the current range at $21.90 level. INTC looks poised to break above the current resistance of $22.04 so keep this stock on your radar as there is a lot of room left to the upside.

The pharmaceutical stocks, which I have listed the past few days, remain in play.

Regeneron (REGN) gapped up above our price target of $188 and consolidated in a range above the open's gap for the whole session. The longer it holds above $188, the higher possibility we could see higher prices moving forward.

Celgene (CELG) saw some selling into the close to finish around the flat line but is still holding above its prior breakout level of $115.44. It's also trading at an upper floor above all rising key moving averages. A break above yesterday's high of $117.31 could set it in motion to retest the recent all-time high of $118.78.

Onyx (ONXX), after finding some support around its 21-day moving average, has been pushing higher into the intermediate resistance zone of $92.50-93.20.The stock has a nice pattern in place. As long as it continues to hold higher support levels, we could see the breakout to a new high through the $93.20 resistance level.

Alexion (ALXN) is flagging nicely above its 8-day moving average. The stock has had a nice come back off of lows, and is currently digesting its impressive 2-day move from April 1. A break above $99.70 could help it reclaim the 200-day moving average and get back in motion. It has room to $103.20 before it runs into the bigger resistance.

A few quick hits are still looking good.

eBay (EBAY) looks good, it needs to trade and hold above $56.85 to potentially make a run at 2013 highs.

Yahoo! (YHOO) held in there again as it has been a great vehicle for some into 2013 highs.

Google (GOOG) is trying to put in a low but is tricky. As long as it stays above $768 perhaps it could see $790ish.

Apple (AAPL) is still hanging onto its $419 support for now. Perhaps if it can trade and stay above $432-435 it could get out of this danger zone. I've been avoiding it for the most part since it lost its 50-day around $458ish.

LinkedIn (LNKD) is a bit sloppy up here and needs time until earnings.

Netflix (NFLX) had a decent bounce yesterday and has some room to potentially re-test the $175 area.

Metals has a decent move for themselves yesterday. For Gold (GLD) to be any good moving forward it should hold $152ish, in my opinion.

If you missed it earlier, check out a preview for my special interview with CeeLo Green that will come out Thursday: http://www.ceelogreen.com/.

*DISCLOSURES: Long EBAY NKE ZNGA S FB and BAC. Short spy, Short SPY 154 puts.