A Downbeat Mortgage Report Could Pressure Stocks

A 2304.25 downside target remains valid in theory, but sellers have been looking so timid lately that we’ll go instead with the minor uptrend at the rightmost edge of the chart (see inset) for Wednesday. It projects to 2353.25, a very modest target that may still be out of reach if DaBoyz don’t get help from short-covering bears. My gut feeling is that with mortgage applications data scheduled for release ahead of the opening bell, bears may not feel like doing any heavy lifting for the bad guys. And if the mortgage data is surprisingly downbeat, as why should it not be with rates significantly off their lows and home prices in the stratosphere, then you can return your focus to the 2304.25 target.  Please note as well that any selloff would have a chance to bounce from 2314.00, an additional HP support derived from an alternative A at 2378.75 on the hourly chart. If you don’t subscribe but would like to join great traders from around the world in the chat room, click here for a free two-week trial subscription. You’ll also receive actionable trading ‘touts’ and invitations to frequent ‘impromptu’ sessions where Rick ‘takes requests'.