Good evening StockBandits!
I’m not sure who coined it, but there’s an old phrase that says “If you hesitate, you die.” Maybe it was a Wild West gunslinger mindset, because in a duel that certainly could be the case. But in today’s market, it’s a phrase that carries weight as well. I mentioned in Thursday’s video that if the market couldn’t break out soon, then impatience could kick in and spark some profit-taking.
That was not a prediction, but simply one scenario that could play out. Now it is a reality. Blame it on any of the day’s headlines, but the fact of the matter is that the strongest markets shrug off negative news (just as the weakest markets ignore positive news), and this has not been a really strong tape. Big-picture uptrends are still intact, yes, but we’ve seen lower highs carved out in recent weeks in 3 of the 4 averages (sans RUT). We’ve been range-bound and have most recently lifted within those ranges, but any market not pushing through resistance and rallying with momentum simply cannot be considered a powerful market.
So, now what? Well, as usual there is no shortage of opinions out there. Some are looking for an ongoing correction to confirm a complex top, others plan to buy the dip to play the range. Opinions aside, this market is still caught between levels so a lasting move still cannot be expected until that changes. Friday’s decline was sharp, but for now prices are still holding above recent support. As you were!
Let’s get to the charts.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
