Two Follow-Through Trades
Last Thursday I wrote that the S&P 500 index had broken the uptrend line of the flag pattern it has been trading in since the August low and was testing the first level of the important 1120-to-1100 support zone. At that time, the question was whether that critical level would hold. I noted that several stocks on my watch list attempted intraday reversals but were falling back in the latter half of the session.
The price action of Berkshire Hathaway (BRK.B) relative to the S&P 500 was a dynamic I was monitoring as a "tell" for the overall market. BRK.B was testing its own support in a zone delineated by $66.20 and $67.00, and I said that it would be important for the overall market that it hold that line....426 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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