By: Scott Redler
As is the case with any large move, the market could use some time to rest right about now. I would look to a few important levels on the S&P to gauge the strength of the market: 1,130 is the first support area, then 1,124-1,126 and MAJOR support at 1,119-1,121.
Most importantly, watch how the leaders–AAPL, AMZN, GS, FCX, X for starters–handle this digestion. The market has given us NUMEROUS breakouts that we have timed very well over the last push higher. Take a walk down memory lane and look through some of our recent setups and where they went.
We do a lot of work for you over here and on the Virtual Trading Floor, now this is the time for you to do some research and reflect on how you handled the trade. The best way to move forward as a trader is to learn from both your mistakes AND your successes (this second part is what many often forget). Take this digestion moment in the broader market and constructively critique your performance in order to better prepare for the next break in the market.
