1. Believe it or not, constructive patterns do still exist. Take a look at the chart of Flotek Industries (FTK). This is a stock I used to trade prior to the 2008 financial crisis and, if it can gain some traction above $19, I suspect I'll get involved once again.
2. US Dollar Index futures (Dx) rallied sharply last week along with equity index futures following Monday's collapse. Once again, I want to shine a light on the 98-99 area (Dx) and suggest a close above there would encourage higher-timeframe bulls to immediately begin pressing their positions.
3. Crude oil futures rallied smartly for a second day in a row Friday and, as mentioned previously, $50-$51.25 is a major upside target in my notes. I tend to get significantly more cautious after a beaten-down security has rallied for three days in a row. So, if crude continues to auction higher on Monday, please think twice before jumping into the long end of the pool.
4. Of all the ETFs I track on a daily basis, five are trading above their 200-day simple averages (SMA) and only one is above its 50-day SMA. Put another way, last week's recovery didn't repair the damage from the week before. The bulls have a lot of work ahead of them if they want to completely reverse the recent breakdown. I'm skeptical and inclined to look short on continued strength above 2000 on the E-Mini S&P 500 futures (Es).
Any trading or volume-profile-related questions can be posted in the comments section below, e-mailed to me at firstname.lastname@example.org or posted to my Twitter feed @ByrneRWS