Watch for a Retest of the Lows
We have a routine Monday-morning bounce to start the week. The flippers hit it hard but support held and inched back up. A bounce in Apple (AAPL) is helping the cause. Breadth is slightly positive at 2650 to 2300 and coal, steel, gold and chips are leading while biotech and retail lag.
What we have to watch for is a retest of the lows. If the early lows are breached, that is going to trigger another round of sell stops and bring in aggressive shorters. When the market is in a downtrend, the lower lows spark the pressure, so keep a close watch on that level. Right now, it's 1429 on the S&P 500....115 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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