By: Scott Redler
That bounce from 1070 back to 1100 was a gift for those who chose to act quick, or for those who waited for a bounce to sell their longs and salvage a trade. Once we got to a retest of the uptrend, it was time to again start looking short.
As I look around, things technically don’t look good.
Tech is weak, some stocks are breaking uptrends.
Banks didn’t bounce well early this week and now are making lower lows.
OIH is leading the way lower.
The agricultural group can use a rest.
Technical damage is really setting in, as these economic headlines continue to beat up the markets psyche. We’ve been taking trades both long and short during this year as we’ve had 8 moves of 5%-10% all in fewer than 2-10 days. For the active trader there is money to be made, we continue to take the move early so we don’t get caught in the tail end. By leaving early to these moves we get in the right frame of mind to measure the market clearly.
The next few weeks will be very tricky. S&P 1068-1072 is small support, then 1056. If 1056 doesn’t hold, the lows of late June can come into play. The market continues to punish anyone who “chases” and looks for follow-through. I will be out all of next week, so I get to take a break from this manic action!
