Good evening StockBandits!
For a while today, it looked as though yesterday’s afternoon bounce might evolve into something more meaningful as the indexes rallied well into positive territory by mid-day. However, a pullback from there was unable to find buyers, and ultimately morphed into an all-out reversal. The market gave back all its gains, finishing negative on the session after a weak effort on the part of the bulls.
Failure to find upside follow through is nothing new for this market, as that’s been the norm for a number of weeks now. What’s interesting though is that the NAZ and S&P 500 in particular each reclaimed short-term support levels temporarily today, but finished back below them. That confirms those levels yet again, this time from below, so we’ll continue to monitor them in the days ahead.
As for what’s next for this market, the fact is that anything’s possible. Conditions are certainly weak, so we could see another leg lower from here now that support has been broken and tested (with a failure). However, we must also respect the potential for a bounce to come along, as corrections do have rebound phases that don’t have to announce their arrival. So, this is still a tricky spot where flexibility is key and timeframes should be kept short.
All these frequent reversals are keeping the charts sloppy right now, which places a premium on high-quality patterns. Stick with those, and it’ll remove a lot of noise which so many other stocks are dealing with right now. My plan for tomorrow is to stick with day trades, and I’m 100% cash tonight after closing out the last of my recent swing trades today (details in the Hit List post).
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: CSX, MA, ETN, QCOM, CREE
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
DECK, SWN, NFLX, AGP
Bearish Watch:
MON, MOS, BEN, MEE, GPN, DRQ, CSX, MA, ETN, APOL, QCOM, CREE, ONXX
The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.
