Japan was just hit with another 7.4 earthquake. Yet, here the S&P 500 is, still coming to terms with 1332, and the Nasdaq Composite Index with 2800, for good measure. To be sure, many traders are anxious, and even a bit jittery, about catching and not getting caught in the next big market move after the past several sessions of consolidation and indecision. The logical presumption is that the earthquake would serve as a catalyst for a move lower, but the market already seems to be stabilizing from the quick spike down this morning after the news hit.
The reality is that we must acknowledge and live in Mr. Market’s version of reality, for better or worse. What that means is that we appear to be well on our way for a seventh consecutive trading session centered around the 1332 price level, which we know has been significant over the past several months. Individual stock selection based on high probability setups and protective stop losses command your attention above all else, at this point.
_______________
