Why You Should Continue To Keep It Light
On Wednesday, the Nasdaq opened flat and initial sold off.
It found its low fairly quickly and began to rally. However, it found its high
by late morning and sold off hard. Finally, after consolidating for much of the
afternoon, it resumed its sell off going into the close. This action has it
closing poorly.
The bottom of its short-term trading range, which also
corresponds with its 200/50-day moving averages and the March 31 low (circa
1335) is a potential target to the downside. The top of this range, circa 1430, could provide resistance to the upside.
The S&P also sold off hard. The March 31 low
and the 50-day moving average are a potential short-term target here too. On the
upside, the April highs, circa 900, could provide resistance.
So what do we do? The indices appear to be stuck in a
short-term trading range. Further, the lack of any positive movement in spite of
a continued flow of good news from the Middle East is concerning. Looking
to the sectors, Internet continues to show signs of distribution and may be
rolling over. The semis were hit hard and could challenge the bottom of their
wide-and-loose trading range. Ditto for software. Biotech resumed its recent
sell off and could be rolling back over. On the bright side, generic drugs,
health care plans and to a lesser extent, selected retail, only appear to be
pulling back in their uptrends. Therefore, all things considered, I’m still not
too excited about this market. Continue to keep it light no matter what you do.
No setups tonight.
Best of luck with your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“….. your book is very clear and easy to follow. I think it is
helping me to improve….”
Judy C.
