Those who have been hoping for a correction in the market finally got a small taste of one last week. It wasn’t a significant one, but it was the first 3-day dip we’ve had in a month. Does that mean the fun is over for the bulls? Let’s not jump to any big conclusions just yet.
After tagging new recovery highs (again), we saw the market reverse hard on Wednesday and show some downside follow through for the remainder of the week. We’re still above recent resistance levels (which may now serve as support), and the trend is still up. That could change, yes, but we’re to trade what we see and not what we think.
As we head into a brand new week of trading, let’s examine some important levels in the indexes to keep an eye on in the days ahead. That will have the greatest influence on how individual stocks are going to move, so it’s where the trading week begins.
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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