Good evening StockBandits!
The broad market weakness we saw on Friday carried over through Monday and into this morning, sending the indexes to new pullback lows from their May peaks. We saw the April 20th gaps begin to get filled, but stocks stabilized and partially lifted in the afternoon to erase a fair portion of the early deficit in each of the averages.
Whether this afternoon’s rebound was due to meaningful buying or simply a bit of an oversold bounce remains to be seen. What is still worth noting here, though, is the fact that we remain beneath recent support zones. Those areas are 2802 for the NAZ, 1332 for the S&P, and 825 for the RUT. So long as prices are under those levels, they’re more likely to serve as resistance on bounce attempts.
Over the past 2 1/2 weeks, we’ve seen both a lower high and a lower low emerge on the daily charts of the indexes. That obviously points to at least a short-term correction, but the jury’s still out when it comes to this being a major turning point or not. Rather than predict the next move (which isn’t necessary), my plan here is to continue approaching this market with caution until it gives some technical reasons not to.
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!
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Video Stocks Discussed: PPO, REG, VNO, SREV, HP, SLB
Swing Trading Candidates:
NONE TONIGHT
[table “46” 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.
