Among our existing recommendations, we would consider closing out long positions in the ProShares VIX Short-Term Futures ETF (VIXY), which is poised to fall back below its 50-day moving average as the market stabilizes temporarily.
Relative strength has been strongly positive behind healthcare stock Medpace Holdings (MEDP) versus the S&P 500 Index (SPX) over the past two months, drawing our attention to its chart:
MEDP has short-term oversold “buy” signals from the DeMARK Indicators® and the daily stochastics, both of which are shown on the chart below. The signals come near support, making them higher conviction.
The short-term counter-trend signals are framed by an improved intermediate-term setup, noting MEDP has its first weekly MACD “buy” signal (not shown) this year, after having stabilized as the broader market pulled back.
Assuming MEDP can surmount cloud-based resistance near $149, targeted resistance would become ~$166 defined by a 38.2% Fibonacci retracement level. A stop-loss can be placed below initial support near $130.
Medpace (MEDP, $140.48):
Target: $166
Stop-Loss: $130