Good evening StockBandits!
A choppy start this morning was soon followed by a sizeable intraday pullback as traders raised cash on more European news that a weekend summit won’t happen. But true to form, the dip-buyers stepped in again to produce a bounce which took each of the indexes to session highs by mid-afternoon. Although the rebound cooled late in the day, it was another psychological win for the bulls to have recovered from weakness.
The indexes continue to make little headway over the past several sessions, and that’s actually a very good thing. The rest phase was badly needed, not only for overbought indexes which needed to digest the move, but for many individual stocks which had become quite stretched. The bounce didn’t take place at a sustainable pace, so once it paused, two outcomes were possible: a steep pullback, or some lateral price action. We’ve gotten the latter so far, and that’s helping to establish some new bases on many of the daily charts with some bull flags and pennants beginning to take form.
This is the kind of price action which opens the door for continuation, but the coast isn’t clear yet. Aside from the pervasive rumors and news flow (Europe, earnings), the indexes still have some technical overhead to contend with before they’ll be able to run again. So far, only the NAZ and S&P 500 have created new recovery highs on the rebound, so the RUT and DJIA will need to follow suit. The big levels to watch are S&P 1230, DJIA 11716, and RUT 737.
I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
Video Stocks Discussed: ADBE, RAX, INTU, ADSK, DLTR, HAL, NOC, WSM, ROK, DIS, NYX, HAR, ADTN, BGC, RCL
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “150” not found /]The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.
