Good evening StockBandits!
Following Wednesday’s tests of short-term support (which held on a closing basis), the major averages rolled over hard today to undercut those key levels on a closing basis. This is a technical breach which not only gives us a resolution to the trading ranges which have held in recent weeks, but also suggests some downside follow through could arrive rather easily as profit-taking kicks in for the first time in a while.
Today’s decline took the DJIA down through the uptrend line that extends all the way back to the beginning of this rally in March 2009, while the S&P 500 broke its uptrend line which began in early November. This kind of action might cause the bulls to reconsider their stance, at least temporarily, and apparently they did today as no attempt was made to buy the dip. Given the strength of the uptrend since last spring though, as well as consolidation phases at various times in recent months, there are some potential support levels we’ll keep an eye on just in case downside follow through is seen. At the very least, this should help to shake up some individual charts for us.
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: CFN, LUV, JLL, AVB, AMZN
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
PENN, CRL, CFN, HUM, LUV
Bearish Watch:
V, GMCR, LAMR, F, JLL, AVB, NFLX, MELI, SLG, AMZN, AM, DECK
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.
