Off the Charts
There has been solid participation from all sectors in this three-day rally off the 50-day moving average with the homebuilders and financials leading the way. It feels like the S&P wants new highs in the near future, but after a sizable move from Monday's low of 1427 to today's high of 1462, we might need some rest. The strength of this rally has definitely caught even the bulls by surprise. If you missed this move, how do you get back into quality long positions?
After a powerful three-day rally, it is hard to enter longs now. The best bet would be to wait for a pullback or a few days of rest/consolidation before entering longs. A hold above 1453 would prove just how strong this market is but a pullback to 1443-1445 would still keep bullish composure intact....675 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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