Since last Wednesday’s bearish reversal, the market has continued to pull back, but on lower volume. The S%P 500 now sits at the 20-Day SMA, which is also near a trendline. So far, it’s too early to get super bearish. A break of this trendline though, and the S&P 500 could at least visit the 50-Day SMA. Levels to watch here.
The dollar continues to be the most important indicator to watch. Although it has rallied, and has a gap to fill, UUP is still trading under a falling 50-Day SMA. Until it breaks that MA, the trend is down for the dollar.
I had some stocks that I was watching for Friday. Two of them triggers my buy points, and I took one of them. I bought ILMN late in the day, although it triggers near the open. This didn’t provide a huge move, but held above the breakout.
DYN also triggered, but I didn’t take this one.
Although the pullback in the indexes has been normal, some of the leading stocks have taken big hits. Here are a couple of recent triggers that I had been holding and sold last week.
Profits can be wiped out quickly when the market reverses, so cash has been the place to be late last week.
I have some stocks I am watching for the long side, but I plan to sit out the action Monday morning. I prefer to see what the market does here before buying stocks. Weakness in the market will likely mean that i will avoid these, even if they trigger:
Good luck and good trading!
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