Good evening StockBandits!
Steady selling pressure this morning left the indexes looking at more losses as bounce attempts failed to gain traction. An afternoon rebound kicked in, which did see partial success, as roughly 2/3 of the morning losses were recovered. But in the end, it was another day in the red for each of the major averages.
The biggest event of the day was the fact that the indexes finally filled the gaps from early last week. The NAZ pulled back 95 points of the 100-point gap on May 10th, and the S&P 500 and DJIA each completely filled their gaps. From there, a modest bounce was seen, so that may be the support zone to keep an eye on in the days ahead. With those gaps filled and the indexes having pulled back persistently for the past week, I’m looking to be cautious on the short side for the next couple of days.
Heading into tomorrow, there’s a distinct lack of clean patterns out there worth highlighting. The back-and-forth nature of the market over the past couple of weeks has translated into many broken bullish patterns, and solid breakdowns in the bearish charts. That leaves very few bounce candidates to focus on, and not many short candidates either (in case we see a continued slide). In a few days we should see more patterns emerging, but for tomorrow I have a narrow list and will otherwise look to trade the ETF’s.
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!
–
Video Stocks Discussed: CSTR, UHS, ORLY, CF, ROST, APD
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
CSTR, VCI, ORLY, IPXL, LCC, UHS
Bearish Watch:
CF, SOHU, CEPH, ROST, APC, DO, LYV, SNDA, WLP, APD
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.
