By: Scott Redler
Is this dip buayble? During last week alone the market took back all of August’s losses. It was fast and one sided with a ton of participation with key stocks and sectors. Many market participants will be returning from vacation and will try to figure out, can they buy this pull in for a move back to the bigger resistance area of 1128-1132, then perhaps higher?
It’s time to go to the play book and use our retracement rules. Is there commitment to last week’s move? We figure out the strength of this market by the size of the pull-in, or lack thereof. The prepared trader can make a lot of money in this market!
S&P LEVELS
Look to see how market handles the 1090-1093 Level. If we hold this level and turn higher this week. This market will show a lot of technical strength and bulls will be in full control. If this level doesn’t hold, the next level would be 1080-1084 to remain bullish on a technical basis. 1074-1077 is the DON’T PASS LINE!!!! If bulls have any Juice, they will defend this level. If we close below this level, in my mind it would show no commitment to this move and it was just another trade. There has been nine 5%-10% moves that have all happened in less then 2-10 days, so last week will just add to the tally.
Print out price point sheet if you want individual stock support and levels
Our “Go-To” stocks all had great weeks last week and are performing well.
VMW AMZN BIDU NFLX AAPL
FFIV CRM CMG
POT
FCX
GS (JPM even played catch-up)
GLD
Many stocks are very extended, however, and I would like a few days of rest, and I will have levels these stocks should hold for a “buy the pull-in” trade. Volume is still absent, but it’s been absent all year. It will be interesting to see if it does pick up now that Summer is basically over.
