After Monday’s gains it wasn’t such a surprise to see small losses today. It didn’t change a whole lot and buyers can probably find some value for the next up swing. Certainly bears didn’t get much out of today, despite the losses. Volume was down, another indication of the lack of interest from sellers (and buyers to a lesser extent).
The S&P remains primed below resistance. Aggressive traders can use today’s lows for stops – although a rapid intraday spike low may trap bears. The S&P still looks like it’s playing for a higher push.
The Nasdaq was barely scratched. Volume was lower. The breakout is looking comfortable.
The Russell 2000 sticks to its breakout, but hasn’t negated the ‘bull trap’.
With the narrowing intraday action, the swing trade becomes attractive. The narrow losses tighten the risk threshold for buyers – who look more likely to benefit from today’s action.
