SOX, BOB, Melissa discussed on CNBC's Fast Money


Welcome back to fast money SOX. Posting their second worst day of the year after what has been a major run for the market with the S and P five hundred falling back into correction territory today, sell sparking fears the new year rally may have come to far too fast. Botha's Basan is at the NYSE with the latest. Hey, bob. Hello, melissa. You know, the fundamentals have for the moment put a halt to the rally, but the technical picture really has been pretty stellar recently. For example, the NYSE advanced decline line has been steadily marching forward. It is close to a new high fifty two week lows, which was a major problem at the end of last year. When almost half the was at a new low on December twenty fourth they essentially disappeared as the market has risen, that's a very important technical indicator. What's missing here are breakouts? On the upside. For example, there's only three stocks in the five hundred fifty two week highs today we've got to do better than that for real breakout. Still the trend lines have been strong so after dipping below the fifty and two hundred eight moving average on. Timber third. That was really the start of the December market volatility. The SNP crossed over its fifty day moving average last Thursday before dipping briefly below it today, again, still generally positive in the last several weeks the vix has gone full circle. It was seventeen in the beginning of the summer went to thirty six on December twenty four and then all the way back to seventeen before moving up to twenty today. Really today's the first significant update for the vix since that December twenty four th close despite today's drop the uptrend for the SNP is still intact that uptrend began on the December twenty four th bottom was tested on January third when the s&p drop two and a half percent. But to seriously break that up trend for this remarkable rally, we'd have to drop blow twenty-six ten that's still about twenty points away. So what this means is the technically the markets at a very important inflection point. If we stay at the trend line or even find some support here that would be a real positive if we break decisively blow that I'm talking twenty six ten. Around there. A lot of people are gonna eager to say, we'll retest the December lows is a lot of that talk around. You know that Melissa back to you all the banks out there saying that right now, Bob, thanks Sahni at the new York Stock Exchange. So this is all happening just as we're hitting the thick of earning season. So in terms of the ones that you're watching him curious, which ones are you're saying, that's that could be make or break here. Well, you know, we talked about the overall market stocks rallied back in this market. And we're earnings are critical Reischauer. I mean, I think you have to go to consumer discretionary. I think if you look at some of the luxury brands that to me have been outperforming, we're we're waiting to get some of the some of the auto guys that I think will reaffirm where the consumer spending is right now to me. I if these guys are reaffirming twenty nine thousand nine that is very very bullish because two months ago, we didn't think they were getting there. Yeah. Karen, I seven the names like a Home Depot, I think is addictive of so many things housing retail consumer all of that. We're not going to see that though for another. A few weeks. Yeah. Really quickly Caterpillar on the twenty eighth which I guess is next Tuesday. I mean, that's going to be fascinating people talk about valuation being compellingly low. So be fascinating to see what they say. And what clarity? They have given the backdrop of this China trade thing. I I think it's what we got not what we're going to get. That's more important. All those large-cap tech Dame's. I think are really interesting. They do the heavy lifting all the way up. We have to have them to do the lifting again. Our next guest says despite the sell off today in this whole market. There are two stocks that could be on the cusp of a major breakout. Chris Brown strategic partners is over at the plasma to go off the chart, take Chris. Hey, melissa..

Coming up next