LUV - The upside for a bounce (Pure Technical Setup)
Airlines are flying high, Time to short? absolutely not. Are there divergences? Yes. Is there weak trend? Absolutely on the overall industry group. Will this be a short, Not until the Oil prices finds its bottom.
Yes, this may have trouble flying to new high, if the market is capped with current level. The Usual suspects for the current weakness is from the Sensitive sectors, Techs, Industrial and Energy. Remember these are important, with 40% weight on SPY and 60% weight on QQQ.
Before i get diverted, The next bull mode in SPX/QQQ the airlines are to be watched for.
Also keep an eye on their earnings as it unfolds. FYI - Earning on LUV is 1/22
Yes, this may have trouble flying to new high, if the market is capped with current level. The Usual suspects for the current weakness is from the Sensitive sectors, Techs, Industrial and Energy. Remember these are important, with 40% weight on SPY and 60% weight on QQQ.
Before i get diverted, The next bull mode in SPX/QQQ the airlines are to be watched for.
Also keep an eye on their earnings as it unfolds. FYI - Earning on LUV is 1/22
Uday C Santhakumar
