Wouldn't Trust a Bounce Here
Toward the end of last week, the major averages were moving up and somewhat widened the trading range we had been watching. Now, however, a quick slide has developed that's taken the averages right down to the bottom of the range. It is notable that the S&P 500 low Monday was almost exactly the same as the low of more than two weeks ago -- about 1358. If that level can hold, the S&P will still be in that same trading range.
Looking at a bit of a broader picture, there have been three consolidations, with the first having transpired in February. The second came in March, and the current one is taking on the appearance of a typical head-and-shoulders pattern -- so the low Monday would be the neckline. Should this be penetrated, especially with increasing volume, the move would constitute a very strong warning of a likely drop to around 1295 on the S&P....366 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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