The market gapped up Friday morning, but then sold off all morning, finding some support in the afternoon. Volume was heavy. The S&P 500 is still trading within this consolidation area. It has tried to breakout, but so far, has failed. This could still breakout, but if it keeps failing, it could also break down.
Until we get some direction in this market, expect choppy action. I am keeping new trades down to a day or two.
I had some triggers on Friday. I took SLH and TUP.
FFIV also triggered, but near the end of the day. I passed on it.
The dollar rallied strongly on Friday. It’s possible that the dollar could be bottoming here. If so, it would be bad news for most stocks. Keep an eye on the dollar for clues in market direction.
The dollar rally meant a sharp down day in Gold. Gold could be in bad shape here.
As mentioned above, with the indexes consolidating, and failing to breakout, actin could remain choppy. Although I am still watching stocks for new longs, these are for very short term trades. There may be a fundamental shift taking place in the market, so I am being careful.
Good luck and good trading!
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