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We Got the Pullback...

But here's what appears happened when we look at the individual charts.

The Market

At least we got a pullback. I will note that when I put my pencil to the paper on individual charts, it felt more like buyers stepped away rather than real selling materialized.

The best example I can give you is the chart of JP Morgan (JPM) - Get Free Report. Real selling would have whacked this chart down into that $88-$90 area that I have had my eye on. But instead it limped down to ... where it was two days ago.

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I did notice many people chattering about the weak banks Tuesday, so my thesis should still hold. As a reminder, my thesis is that a good whack in JPM into that $88-$90 area would probably be accompanied by hysteria about the banks, which is why I’d probably be keen to buy some for a trade into such hysteria. But for Tuesday, it’s simply still sitting in the same range it has been in for nearly two weeks. And it wasn’t alone. I have a pile of charts like that.

Statistically breadth was poor, as it has been for a while now. Well, let me restate that breadth continues to lag. Poor would imply breadth is negative on up days, which has not happened. Not yet at least. But it does keep the McClellan Summation Index heading down.

I do think the chart of the small-cap Russell 2000 fund (IWM) - Get Free Report will be well watched in the coming days, since it is now sitting smack on that uptrend line. If it breaks the next support is still that $135 area we’ve looked at often.

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And then there is the chart of the Invesco QQQ (QQQ:Nasdaq) with that channel still intact. Every time it has tagged the upper end of the channel, it has pulled back. It has also rallied off the lower line. Every single time since April.

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I am inclined to think even if we rally Wednesday, we’re just not going anywhere special on the upside right now.

New Ideas

I have to note that the chart of JB Hunt (JBHT:Nasdaq) broke out of a long time resistance line Tuesday and that is good for the chart. It can trade rather thinly, so I struggle with what a stop should be; $115 seems reasonable, but too far away.

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One final note: I am still a fan of gold, with a target in themed $170s on GLD (GLD) - Get Free Report but the DSI got to 91, so don’t be shocked if there is a pullback.

Today’s Indicator

The McClellan Summation Index tells us what the majority of stocks are doing and in this case, they have been heading down for a month now.

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Q&A/Reader’s Feedback

Helene welcomes your questions about Top Stocks and her charting strategy and techniques. Please send an email directly to Helene with your questions. However, please remember that TheStreet.com Top Stocks is not intended to provide personalized investment advice. Email Helene here.

SPX Corp (SPXC) - Get Free Report – not to be confused with the SPX, which is the S&P index — is like so many charts: It can’t break down under the trend line and it can’t rally. It just sits there, unable to even care about the market. A break of $38 would be bearish.

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Canopy Growth (CGC) - Get Free Report is a chart that broke the uptrend line and then has just sat there. There was no continuation on the downside and barely any rebound. A break of $16 would be bearish. If it cracked down to $13, I might even like it.

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Pure Storage (PSTG) - Get Free Report is another chart that looks dead in the wat er. I’m not even sure a move up and over $18 (resistance) would revive it, because there is another entire layer of resistance at $19. And a break of the uptrend line? Well that would find support $15.50 to $16. So I’ll call it a trading range of $16 to $18 for now.

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