Good evening StockBandits!
Today we saw 3 tests take place in the averages, including the S&P 500, DJIA, and RUT. Each of them entered their second day of pullbacks off Monday’s highs, and each of them threatened to undercut their recent breakout zones at 2093, 18103, and 1221, respectively. They didn’t break down though, despite ending today’s session within spitting distance of those levels.
The S&P 500 has seen declines in 5 of the last 6 sessions, yet is off by less than 1% on a closing basis. Although much better upside momentum might have been expected after a significant breakout to a new high, the fact is that this lateral movement has allowed the market to take a breather. Those are rarely a bad thing, particularly after a 7% lift off the February low.
Pausing to rest has made for some choppy action in the short term, but may end up allowing this market to run again. After all, we’ve yet to see a negative change of character. The biggest complaints are simply that there’s such limited emotion here and that the momentum of last month has proven elusive for the past two weeks. That’s nothing drastic, and a little more time might just be what this market needs to regain some energy.
Let’s get to the charts.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
