Monday Evening

SPX Daily

It appears we are stuck bouncing around between the lower 2 volume zones marked on the chart. Last Thursday, the bulls stepped up right at the top of that bottom zone (1325ish). Now that we're getting closer to the 1360-1370 area again... I think the bulls have an opportunity to push out of the range. A close above 1370ish will likely point to a push up towards 1400. On the flip, a close under 1320ish will likely point to a push down towards the lows (1266ish). I think there are currently higher odds that we run towards 1400, but earnings reactions will obviously have the last word.

Monday Afternoon

S&P futures have been chopping around under Fridays close (1352ish) after the bulls stepped up this morning near the weekly pivot (1342ish). Volume is pretty light so far... suggesting a 10-15 point range today. The low of the day session is 1343, which puts the high target area at 1353-1358 (1358-1363 on SPX).

Monday Morning

Gator's Chart of the Day: TDW

I mentioned this stock on Thursday and I still like it as we head into the new week.  Tidewater has now broken the downtrend line as it continues to push on the upper Bollinger band.  The 20 day simple moving average has turned up and will be crossing the 50 day this week unless it has a drastic change in direction.  You can see where the bands got a bit tight in mid June and are now expanding nicely.

Earnings are expected on July 30th but the annual meeting is this Thursday so I would expect news from that gathering.  If you have been looking for an excuse to spend a few days in New Orleans this is your chance and you may even be able to deduct the trip.  (Consult your tax professional.)

The Trade
I would look to take a small position ahead of the company meeting and put a stop back in congestion just under the downtrend line.  News from the meeting and trader's reaction to it would determine if (and how quickly) the position is filled out. I look for TDW to trade back up to the mid 50's as a minimum target but it may pause around the 200 day.  That average was support for all of April.  Any good news for shipping or oil/gas exploration can be a catalyst to move this stock.