If These Levels Break, We Should See A Quick Move South
Yawn. Anyone notice if
the stock market has been open recently? Over the last 5 days these
are the closing prices of the S&P 500: 1219.34, 1220.24, 1219.02, 1219.71 and
1221.73. Tight consolidations can lead to sharp moves, so don’t completely fall
asleep. I suspect we’ll see some action soon.
The current support areas outlined in these
charts are significant. Should they break, we could see a quick move south. As
noted, potential topping patterns are taking shape. I wouldn’t jump the gun just
yet, though. Let the market show its hand over the next few days. To prepare,
you could search for stocks that are exhibiting similar topping patterns to play
short should the market drop lower. If the market rallies, there are still a
decent number of stocks in uptrends/basing patterns. Be prepared for either
scenario. A move will likely happen one way or the other pretty soon.
Let’s look at a few charts to note some important patterns and support levels:
Most sectors have been relatively quiet like the broad market itself lately. One
exception is the Internets, which accelerated their pullback today and could be
worth watching in upcoming days.
Best of luck with your trading,
Rob
robhanna@comcast.net