Despite the major indices flashing green this morning, the bulls are turning in a rather lackluster effort underneath the surface, without much leadership and buying energy. As an example, the solar names had pulled back to logical support zones headed into today, only to lose them thus far. While this could easily just be a shakeout designed to trigger a slew of stop losses, that type of price action is a pretty good reason why automatically assuming support levels will hold is a dangerous way to swing trade. Instead, my style is to wait for buyers to present themselves in a meaningful way first, and then try to quickly find a high probability entry point.
Broadly speaking, the S&P 500 and Nasdaq Composite continue to come to terms with the upper end of their multi-month trading ranges of around 1330-1332 and 2800, respectively. One area that impresses me is the financial sector, and I am overweight finnies in my portfolio.
Thanks Chess.
Anytime, Yogs.