CAT generated a sell signal on the weekly closing chart, having closed on Friday below the most recent low weekly close at 249.71 (closed at 247.76). Nonetheless, the sell signal simply suggests that the high for the rally may have been found for the next few weeks and not suggest that a correction of consequence might have started. The bears did have the opportunity to do that, given that a close below the previous all-time weekly closing high at 244.02 would have generated a failure signal as well. The stock did trade below that level during the week but not on Friday, suggesting that the bulls might be successful in keeping the stock above the previous all-time high and trading sideways between $240 and $260. Nonetheless, the stock did close in the lower half of the week's trading range and further downside below last week's low at 241.80 is expected to be seen this week, meaning that the door is still open for a failure signal to be given. There is no established intraweek support until 231.94 is reached and at this time, getting down to that price seems to be probable. That support is somewhat minor in nature and if broken, then further downside is likely to be seen. Pivotal intraweek support is found at 225.56, which if broken would open the door for the $200 level to be seen. The stock did report earnings this week and they were slightly worse than expected. It did generate a gap down between 261.31 and 257.79 that could end up being a breakaway gap, which would then likely be followed by a runaway gap (if not closed). It is likely that the bulls will attempt to close the gap before further downside is seen, which in turn would suggest the stock is trading sideways. Failure to close the gap would open the door for another gap down to occur, which would be a clear signal that a top to the rally has been created and such an occurance would offer a $25 move down from wherever the runaway gap would occur. The stock did close on Friday slightly in the upper half of the day's trading range, suggesting the stock will move higher on Monday above Friday's high at 250.95. If that does not happen and Friday's low at 243.13 is broken, it would be a negative omen for the bulls.

DOW generated a new 7-month intraweek and weekly closing high and closed near the high of the week, suggesting further upside above last week's high at 60.72 will be seen this week. The stock is showing this area (from here to 61.76) to be quite pivotal, given that the stock shows a weekly gap down from the 2nd week of June at 61.76, which if closed would negate all the downside seen the past 7 months but if not closed, could be a very negative sign for the rest of the year. With the stock closing at 60.00 on Friday and likely to go above last week's high at 60.72, the probabilities of closure of the gap are high. If by any chance the stock gaps up on Monday (only good for Monday's action), it would mean a huge and highly indicative island formation in favor of the bulls will be created, which if confirmed, would be strongly bullish. If no gap up opening occurs on Monday but the gap is closed that day or any other day this week, then it would mean that the correction low at 42.91 will be confirmed as a major bottom. It is interesting to note that there is quite a bit of confirmed intraweek resistance between 60.65 and 61.17 (from 15 months ago) that is going to hamper the efforts of the bulls. Either way (gap is closed or not closed), there is now clear intraweek support found between $55 and $56 that is not likely to be broken unless something tangibly negative occurs. Closure of the gap would likely mean further upside to 65.86 would be seen.

ENG negated the small gains made the previous week, having given back all of the 20% gain generated the previous week. Nonetheless and on a positive note, the stock had made a new 2-year intraweek and weekly closing low 5 weeks ago and such a low requires a successful retest of it before the bulls being to climb aboard. There is/was important weekly closing support at .865 prior to the new 2-year weekly closing low at .74 and with the stock closing on Friday at .865, if a green weekly close occurs this week, both the previously important weekly close support, as well as the recent low weekly close support will have been tested successfully. As such and if it happens, it will be seen as base-building action. In addition, the fall back from the previous week's rally was not unexpected as the stock got near the 200-day MA, currently at 1.13, with the previous week's high at 1.10. It is unlikely that line will be broken until some fundamental catalyst occurs. The company reports earnings on March 9th (in 5 weeks) and that could be the catalyst needed. The stock did close on the low of the week and further downside below last week's low at .84 is expected to be seen. Intraweek support is found at .82 and at .78. The chart suggests that this is a base building process and as such, purchases of the stock could be considered this week between .79 and .83, using a stop loss at .66 and having a realistic upside objective of at least 1.83, to be reached in a time frame of 3-6 months. Such a trade offers a 6-1 risk/reward ratio.

PLNHF generated a positive reversal week, having made a new 4-week low but then closing green and in the upper half of the week's trading range, suggesting further upside above last week's high at .97 will be seen this week. If that does occur, it will mean that a required/needed successful retest of the 3-year intraweek low at .60 will have occurred. Such a successful retest would be confirmed if the stock goes above the recent intraweek high at 1.05. This stock has been in a clear downtrend for the past 24 months from a high of 8.67. The stock has gone down mostly because the Cannabis industry has been under strong sell pressure for this period of time. Nonetheless, the company itself has some very positive fundamentals and it is anticipated that the Cannabis industry is going to begin to recover in 2023, meaning that there is no better time to buy this stock (or add to it) than at this price. I did give this mention 5 weeks ago (when it was trading around .60) and the stock appreciated 70% in price within 2 weeks. If you bought it then, add to it now. If you did not buy it then, this level (around .90) is a good purchase price. Use a stop loss at .56. If this is the bottom (likely) and a recovery phase is to occur, the upside objective is the 200-week MA, currently at 2.96, to be reached in a period of 6-9 months. As such, a purchase around .90 would give a risk factor of about $.34 (per share) and a profit potential of about $2.06 (per share), meaning a 6-1 risk/reward ratio. I will be adding shares this week.

TXT generated a new 53-week intraweek high and a new 44-week weekly closing high and closed in the upper half of the week's trading range, suggesting further upside above last week's high at 76.11 will be seen this week. Nonetheless, this area (around $76) has shown itself to be decent intraweek resistance given that in March 2022 it got up to 75.95, in December 2022 it got up to 75.95 and on both of those occasions, the rally stopped and a decent to strong correction occurred. The stock got up to 76.11 last week but it did that on Thursday and Friday it gave up all of Thursday's gains to close on Friday at 74.44. Given the volatility seen last week, especially on Thursday and Friday, as well as the weakness seen on Friday across the board in the index market, there is reason to believe this resistance level could hold up again. I did state that the stop loss should be at 72.44, meaning that the short positions should have been covered. I did not do that given the importance of the economic and earnings reports last week. Nonetheless, with those out of the way, this is a pivotal week for the stock. Any further upside above 76.11 (especially a daily close above 76.01) would be a positive that would require strong consideration for covering of the short positions. On the other side of the coin, any daily close below 73.57 would be reason enough to hold on to the shorts and see what happens thereafter. A daily close below 70.60 would suggest the initial mention's objective could be in play again. There is no valid chart reason at this time to be short but if last week's action gets negated this week, the short positions could still generate a profit.

VET generated a new 54-week intraweek and weekly closing low and closed on the low of the week, suggesting further downside below last week's low at 14.18 will be seen this week. The chart strongly suggests that the 200-week MA, currently at 12.89 will be seen. Nonetheless, that is a support line that is not likely to be broken without new negative fundamental news (none expected) and therefore a bounce off of that line is likely to be seen. There is decent and well established (3 previous occasions over the past 4 years) weekly close support between 13.92 and 14.29, meaning that there is a possibility that the stock could get down to the MA line and then generate a positive reversal this week and close green. If that occurs, the $18 level (on a weekly closing basis) would become the upside objective. Intraweek, it is possible the stock could get back as high as $20.

VNET generated a totally uneventful week in which no new signals were given. Overall though, the bulls are presently in control given that the 200-day MA was broken to the upside 4-weeks ago and the stock has maintained itself above that line since. Intraweek resistance is found at 6.92, at 7.28, at 7.60 and at 7.94. Any daily close above 7.94 would open the door for a rally to the $10 level. Any daily close below 5.48 would negate all the recent gains and turn the stock negative.

X generated a new 9-month intraweek and weekly closing high and closed in the upper half of the week's trading range, suggesting further upside above last week's high at 31.34 will be seen. The mention had given a stop loss at 30.67 that was evidently hit last week. Nonetheless and like with TXT, I did not get out as I was waiting to see what the economic and earnings reports would be before making a determination on whether to hold or get out. There is no chart reason at this time to hold on to the shorts, given that the there is no resistance of consequence until the $39 level is reached. Nonetheless, if last week's high at 31.34 is not broken this week, it is possible (maybe even likely) that that the rally will be negated and the original mention remain the same. For that to start to happen, the bears need to generate a daily close below 28.88. A break below 27.25 would generate a new sell signal and give the bears the edge again. The stock closed on Friday at 30.05.

ZLAB continued lower, having made a new 4-week intraweek and weekly closing low and closing on the low of the week, suggesting further downside below last week's low at 39.26 will be seen this week. Nonetheless, the bears have not yet accomplished anything, given that no support levels have been broken as this mini correction is occurring. By the same token, the stock is now close to an area of daily and weekly close support that needs to hold, in order for the uptrend to continue. Daily close support is found at 38.71 and weekly close support is at 37.76. In addition, the 200-day MA, is currently at 36.78. None of these should be broken, if and when the fundamental picture remains the same. There is a gap at 33.34 that is a bear target but the gap is viable as it came off of positive fundamental news, meaning it should not be closed. To the upside, pivotal intraweek resistance is found at 44.50. If that level of resistance get broken, this mini correction will likely be over.