Revisiting Important Support Levels

There is a fine line between multiple tests of support reinforcing the validity of the level or of repeated tests eroding its underpinnings. Many stocks in a broad range of sectors have been testing important support levels, and the only leadership of note is the breakdown in the financial sector. The Sector Select SPDR charts  show that an up-trending support line, a horizontal support line or a combination of both have managed to hold the price during the last month. The Financial Select Sector SPDR (XLF) has broken below its support line and 50-day moving average.

SPDRs Source: StockCharts.com View Chart »

This market correlation has highlighted the importance of doing your homework, whether it be fundamental or technical, and has made the job of stock-picking much more difficult, yet equally as important. I have three stocks today with charts that are positives in today's dour market session. ...404 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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