We’ve seen some nice moves in the past few weeks, with many stocks awakening from their slumber to sprint to higher levels. The indexes have done the same thing over the same stretch.
Although we’ve seen some incremental gains in recent days, overall the pace has definitely slowed. And that’s actually a good thing.
Rest is needed after a huge surge higher. Traders re-evaluate their positions, those with cash wonder if they might be chasing, and the shorts get concerned that perhaps a pullback won’t arrive in the timeframe they desire. So things get quieter, and some consolidation is seen. That’s exactly where we are right now.
But following this rest phase, momentum may well return, and we’ll need to have some clues to watch for in case that starts to happen. So, let’s examine some important levels in the indexes to keep an eye on in the days ahead.
This clip was also posted over on the Trading Videos [1] site (as always), and perhaps you’ve seen it there – but in case you didn’t, I wanted to put it here on the blog for you.
Let me highly suggest clicking the “HD” on the video player and then going full-screen for best quality.
Thanks for stopping by and I’ll see you here soon with more. Until then…
Trade Like a Bandit!
Thanks for stopping by and I’ll see you here soon with more. Until then…
Trade Like a Bandit!
Jeff White
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