By: Evan Lazarus
As the market continues to climb the wall of worry, traders need to pay attention to the ominous levels that lie ahead. With the 200 day moving average and the key 62% retracement just a stone’s throw away, traders need to watch price action as well as some benchmark stocks at these levels.
The Wilshire 5000 index, which I believe to be the best overall market indicator at this point in time, as it takes into account the largest basket of stocks, has already reached both the 200 day moving average and 62% retracement on yesterday’s move higher. While we strongly suggest following the market’s trend higher, it is important to respect these key technical indicators and to have a functional plan in place. Remember, markets are not one directional.
