The bulls had a wonderful opportunity to thrust the market higher last week, but they passed it up.
Instead, they merely provided support on the dips, preventing any downside damage from being done. It wouldn’t have taken much to push the indexes to new recovery highs once again, but the light-volume action which is so prevalent in late-August conditions prevented any momentum from gaining traction, leaving us in a holding pattern.
This week, we could see that change. The bears could reassert themselves and spark a selloff, thereby giving the bulls something to ponder over the coming 3-day Labor Day weekend. Or, the bulls could simply return to business as usual and keep on doing their thing.
Let’s examine some important levels in the indexes to keep an eye on in the days ahead, as that will have the greatest influence on how individual stocks are going to move.
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!
Jeff White
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