Following an initial pullback from the January highs, no bounce was produced last week with the dip-buyers failing to appear. The group which has been so responsible for upside follow through since the market turned higher in March of 2009 suddenly disappeared, and stocks have been declining steadily for a couple of weeks now.
Key levels from previous months have been proving to be short-term rest stops for the indexes on the way down, offering not only some orderly price action but also a reminder to us that key levels are worth keeping an eye on.
It’s hard to argue that an important change of character is underway for this market, and the depth of this initial selloff certainly raises the likelihood of a lower high being created once a bounce kicks in. At some point, a bounce will arrive, but at the moment the short-term trend is down and that deserves our respect.
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  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!
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