With only 4 days of trading last week after the Monday holiday, the bulls had to make it count – and they did. They went undefeated on the week with across-the-board gains each day, reclaiming some important levels in the process. But with light volume on the way up, the rally is not without its faults.
Add to the mix the fact that the market has become somewhat short-term stretched to the upside, and the conditions are ripening for at least a short-term pullback. As with any market move, anticipation must be met with confirmation, and as of yet we don’t have that. Nonetheless, it’s a good time to exercise some added caution on the long side as the temptation to book profits becomes more powerful for the bulls in the coming days.
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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