The market indexes showed some bullish reversal signals on Friday, the MorningStar signal. Although the NASDAQ did not form a pure MorningStar signal, it had a MorningStar characteristic and the NASDAQ closed above the T line. The Dow and the S&P 500. A positive open on Monday would indicate the confirmation of the MorningStar signal as well as showing the T line is not acting as a resistance level anymore. This would imply to start taking profits on short positions that are showing bullish signals and start adding long positions again.
The gaming stock sector is acting well SGMS, PENN, DKNG, GME, MGM, RCL. The biotech sector is also showing some good buy signals,SAVA, NVAX, INO, SRNE, TEST, MRNA.The oil and gas sector is showing a lot of weakness, be ready to short, COG, RRC, CNXM, APA, REGI.
The appearance of a MorningStar signal with stochastics in the oversold area at least indicates a possible bounce and/or upon strong confirmation the next wave starting in the up trending markets
