TSLA This 2-day chart of TSLA is similar to the one posted on Friday. Keeping it simple, a breakout above the downward sloping trend line will be a signal that a new leg up toward the old high at $900 is underway. Since Monday is earnings day, price action going into the mid-to-end of next week will be more telling than spikes up or down Monday after hours and into Tuesday. Needless to say, we will be monitoring TSLA closely next week. IWM IWM (Russell 2000 ETF) peaked in February and has been locked in a relatively narrow price channel for five months and counting. The hourly IWM chart below provides a close-up of the sideways price channel and in particular shows how last Monday's steep decline pierced the bottom of the channel and then reversed back inside for the rest of the week. Watch IWM 210 - when that goes, the whole enchilada goes. VXX Speaking of parallel channels, the VXX 30 minute chart is sporting one of its own and one which, if triggered, will generate a Buy Signal above $31. A VXX breakout in conjunction with with an IWM breakdown would confirm a new leg down in the markets that should be more than the one-day wonder we had last Monday. If both are triggered, both should be taken. September Index Puts September 17th puts have eight weeks until expiration. This is enough time to benefit from a short or intermediate term decline starting any time in the next few weeks. Last Monday's gap below support should have immediately, i.e., Tuesday or Wednesday, followed through to the downside but instead served as "dip" for the bulls. As it was one weekend ago, the market is on the cusp of something much bigger than sideways trends and a series of nominal new highs. When the hit comes, these past few months spinning our wheels will quickly be forgotten.
