Good evening StockBandits!
A gap lower this morning sparked further selling pressure as profits were taken and the market posted its worst day in a month. That isn’t saying a whole lot given the low volatility and shallow declines of late.
Today’s selling simply left the indexes caught in recent trading ranges and above short-term support zones, so while it was more red than we’ve seen in a while it still did not do any big technical damage.
That said, it would not take much additional selling from here to undercut those support areas. The benefit for the bulls is that the stair-step type of price action on the way up since December has created a number of levels which could now serve as potential support zones on a pullback. Further, a break of recent support would not necessarily mean a trend change.
It’s important to be respectful of both sides here. The bulls have been paid repeatedly to buy all dips, so they are not likely to surrender quickly and just walk away. At the same time, it’s been a while since we’ve gotten a meaningful dip, and at some point it will arrive. The best way to handle it is not to predict what’s going to happen, but rather to stay picky and let the charts decide.
One other note is just a reminder that the market will be closed in observance of Good Friday, so we’re looking at a 3-day Easter weekend after tomorrow’s session and that could certainly leave some traders heading out early. If the market hasn’t picked a direction by early afternoon, the odds will be high that the remainder of the day won’t offer much.
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: LEN, INXN, LVLT, BTU, PXP, CE
Swing Trading Candidates:
NONE TONIGHT
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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.
