The overhead supply we discussed yesterday at the 1840 area on the S&P 500 Index is playing out thus far today, seen below on the daily chart.
I still see leaders leading to the downside, namely the small caps, biotechs, and high growth Nasdaq stocks all with room to drop further before becoming very oversold.
I am still short biased, though trading around my positions to lock in gains for the sake of discipline and not letting the wild swings in this market adversely affect me.
It is important to remain level-headed in this type of market, especially, and not throw caution to the wind because it seems as though we simply cannot go lower. In reality, a true market correction, even within an ongoing bull market, can become wildly oversold before a tradable bounce or bottom ensues.
At any rate, I am not yet looking for longs here with the S&P below 1840. If bulls can pull off a stunning close above it then I would consider a few names holding up well as long ideas, such as the energy patch stocks I have previously referenced.
Some short ideas setting up again: DNKN F GMÂ
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There is a movie I have never seen. I even have it but just never taken the time. Great calls on this market Chess.
Must see, Bernie. Thank you!