Monday dealt the market a set back. The first down day of any consequence in a while. But was it a turning point for the broad market lower? Maybe, but I don’t think so. For someone with a broad upward bias, there are three things to do on days like Monday.
The first is to make sure that your stops and protection (options collars, put spreads or whatever) make sense. Next, it's time to look for stocks and sectors that are holding up well or even moving higher against the market.
SanDisk Corporation (NASDAQ:SNDK) is one such play.
Sandisk came up as a potential trading candidate with the weekend work. The chart shows that it was testing resistance at 104 for the 3rd time. This time it came from a higher low -- a minor pullback. But that pullback and reversal is also the third leg of a 3-Drives Pattern, which targets a move to 114. With a break of a broad triangle higher as well, there's a target of 128. The relative strength to the market Monday and break out just adds more support to the story.
This stock is ready.