Step Away From the Buy Button
The time to buy was Monday, as the S&P 500 pulled back to within pennies of its April 11 gap at the 1358.59 level. The low came in at 1358.79, and apparently that was close enough. Now, as the S&P retraces its latest pullback from the close of April 5 and comes within striking distance of its April 9 gap, it is no longer a time to buy. To the contrary, it's a time for selling. That's what I'm doing now, in fact, as the S&P pops up to its April 9 gap at the 1398 level and the Russell 2000 returns to its April 9 gap at 818.
As of 1:45 p.m. EDT, the S&P has come within a fraction of a point of its gap, and the Russell has reached within about a point of its gap. After buying into the recent selloff, I am happy to sell into this pop -- but I'm still maintaining some bullish positions, just in case the move continues higher into the end of the seasonal trade next week. ...489 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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