Good evening StockBandits!
Monday’s rally put the bulls in a solid position to continue the uptrend after short-term rests, but today we essentially saw that move given back. The averages are still up a few points for the week after today, but that’s not what matters. What stands out is that it seemed the bulls were back on the move, only to see them fail to produce even a single day of follow through. Surprisingly, they’re still on the fence, weighing the benefits of going all-in after chalking up fresh new highs.
Granted, the indexes remain above recent resistance zones and are therefore still in fair technical shape here, which one might expect just a day after tagging uncharted levels. However, where is the resolve? Where is the emotion and the excitement and the fear of being left behind and the momentum that we so often see when new highs are being reached?
We might or might not see that emotion surface, so until it does, our job as traders is to keep seeking the best setups out there and stick with appropriate timeframes for new positions. Emotion in the market cycles, and right now it is somewhat suppressed. That doesn’t negate the opportunities which exist, it just limits them – for now.
Let’s get to the charts.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
