ZIP (Zipcar Inc.) at 21.20 PROBING 4-MONTH BEAR TRENDLINE RESISTANCE (SELL)

ZIP rebounded off the 17.03 YTD low (22 Aug) to probe the former 4-month bear trendline resistance (from 20 Apr/14 Jul/01 Aug highs), reaching 22.00 (31 Aug high) before consolidating. While the significant lower high at 22.08 (Resistance 1) near the former bear trendline caps, scope remains for bears to target 20.71 (Support 1) then 19.15 (Support 2). A clean loss there would open 17.03 (Support 3) for a potential retest. However, renewed strength above 22.08 would shift the near-term focus higher. An upside break there would stage 23.46 (Resistance 2), near 50% retracement of the 30.80(20 Apr YTD high) /17.03 decline, ahead of 25.88 (Resistance 3) near 61.8% retracement.

Trading Indication: Short-term (Intraday):
Sell at 21.60 or higher;
Target at 19.15 and lower; Stop Loss at 22.05> (2.0%)
Long-term: Possibly buy lower

LNKD (Linkedin Corp.) at 84.10 BREAKING ABOVE 22-DAY BEAR TRENDLINE RESISTANCE (BUY)

LNKD rebounded off the 70.04 low (25 Aug) following the bullish RSI divergence formed from the 08 to 25 August lows on the daily chart and breached the steep 22-day bear  trendline resistance (from 28 Jul/15/26 Aug highs) to reach 89.31 (31 Aug high) before consolidating. While 80.73 holds, scope remains for bulls to target the 93.53 key lower high (Resistance 1) near 50% retracement of the 115.05 (28 Jul high)/70.04 decline. An upside break there would stage 96.20 (Resistance 2) ahead of 100.44 (Resistance 3).
It would take a return through 80.73 to shift focus lower. A downside break below would reopen 75.89 (Support 2) which guards 70.04 (Support 3) for a potential retest.

Trading Indication:
Short-term (Intraday):
Buy at 82.30 or lower;
Target at 93.58 and higher; Stop Loss at 80.70< (2.0%)
Long-term: Possibly sell higher

FXCM (FXCM Inc.) at 11.69 BREAKING OUT OF A BULLISH WEDGE PATTERN (BUY)

FXCM has broken out of a falling wedge pattern (from 16 Aug high/19 Aug low) following the bullish RSI divergence formed from the 25 May to 09 August 2011 lows on the daily chart. While the 10.57 pivot low holds, there is scope for bulls to re-open the August high at 12.66 (Resistance 1). An upside break there would confirm the higher low at 10.57 and extend gains towards 13.35 (Resistance 2), then possibly 14.14 (Resistance 3). However, a break below 11.36 near the wedge upper bounds would delay and expose the 10.57 key support (Support 1). A downside break there would confirm a lower swing high under 12.66 and risk a deeper setback towards 9.43 (Support 2) ahead of 8.13 (09 Aug YTD low, Support 3).

Trading Indication: Short-term (Intraday):

Buy at 11.22 or lower;
Target at 12.66 and higher; Stop Loss at 11.00< (2.0%)
Long-term: Possibly sell higher

UUP (PowerShares DB USD Index) In A Wedge

UUP has been consolidating in a wedge pattern (from 23 May high/04 May 2011). With the potential bullish RSI divergence forming from the 04 May to 17 August 2011 lows on the daily chart, there is scope for bulls to re-open the recent 2-week range resistance at 21.16 (Resistance 1). A break above would extend gains towards 21.41 (Resistance 2), near 61.8% retracement of 21.74(12 July)/20.87 (17 Aug), then 21.61 (Resistance 3) near the wedge upper bounds. However, a break below 20.90 near the wedge support would initiate the next down leg towards the Fibonacci projections at 20.66 (equality target x 21.41/20.87 from 21.16) (Support 1) then 20.47 (1.382x 21.41/20.87 from 21.16) (Support 2) ahead of 20.35 (1.618x 21.41/20.87 from 21.16) (Support 3).

Trading Indication (Short term - Intraday):

Buy at 21.00 and lower;
Target at 21.41 and higher; Stop Loss at 20.88/85 (<0.71%)
Long-term: Possibly sell higher

10-year Treasury Note Yield (BUSY10)

10-year T-Note yield has descended within a 17-year bear channel since November 1994. The yield posted a fresh low at 1.974% (18 August 2011) below the 2.034% prior reaction low (18 December 2008) before consolidation took hold. Near term, a break above 2.360% (Resistance 1) would extend the consolidative strength towards 2.438% (Resistance 2), near 38.2% retracement of 3.223% (01 July 2011)/1.974%, then 2.589% (Resistance 3) near 50% retracement. However, as the monthly trend studies remain bearish, there is scope for the current corrective bounce to form a swing high under the significant resistance zone at 2.756% (near 61.8% retracement)/2.814% (Resistance 4)/(Resistance 5) ahead of a reversal to the downside. A break below 2.113% (Support 1) would resume bears to reopen 1.974% (Support 2). Only a sustained breakdown there would initiate the next down-leg towards the Fibonacci projection at 1.734% (0.618x 5.333%/2.034% from 3.770%) (Support 4) which guards the next Fibonacci target at 1.250% (0.764x 5.333%/2.034% from 3.770%) (Support 5).

Trading Indication:
Short-term (Intraday): Possibly buy lower
Long-term: Possibly sell higher

August 26, 2011 SPX

SPX continues to base within a triangle since 09 Aug (52-week) low at 1101.54. Near term, a break above 1190.68 (Resistance 1) would extend the consolidative strength towards 1208.47 (Resistance 2) then 1218.11 (Resistance 3). However, as the weekly trend studies remain bearish, there is scope for the current corrective bounce to form a swing high under the significant resistance zone at 1227.08/1249.09 (Resistance 4)/(Resistance 5) ahead of a return to the downside. A break below 1135.91 (Support 1) would resume bears to target 1121.09 (Support 2) then 1101.54 (Support 3-Target 1) near 38.2% retracement of the 666.79 (06 Mar 2009 low)/1370.58 (02 May 2011 YTD high). Only a sustained breakdown below 1101.54 would expose 1056.88 (Support 4-Target 2) which guards 1010.91 (Support 5) near 50% retracement.

Trading Indication:
Short-term (Intraday): Possibly buy lower
Long-term: Possibly sell higher