The stock market is oscillating at the top of its trading range with the S&P 500 index unable to breakout past resistance in the 1225-1230 zone. There is a growing chance that stocks will merely churn sideways through the end of the week. October options expiration is this weekend. The bigger event is the EU summit on Greece this weekend. Traders may be unwilling to launch new bets ahead of the summit.
We are not adding any new trades tonight but I wanted to share what's on my watch list. I would not hold over an earnings report and still need to look up earnings dates.
NTAP - We are still bullish on NTAP. Look for another dip near the 50-dma with a very tight stop loss or wait for a breakout past $40.00.
BZH - Some of the homebuilding stocks appear to have bottomed. A breakout past $2.05 might be a new bullish entry point in BZH.
MSFT - MSFT is a slow moving big cap tech stock. A breakout past resistance at $27.50 can be used as an entry point. Otherwise, wait for a new bounce from its 200-dma near $26.00.
BAC - Financials are trying to break their bearish trend lower. Their success probably depends on the weekend EU summit in Brussels. BAC failed at the 50-dma today. A breakout past this moving average could be a bullish entry point.
JPM - JPM is generally considered a "best in breed" bank stock. A rally past the $34.00 level might be a bullish entry point. Bear in mind that JPM tends to move slowly.
These stocks are consolidating sideways after breaking out from their trading range. Look for a new breakout from their current consolidation: CUB, MAR, RRD, TER