Scalper1 News
Major averages fell yesterday on mixed volume, higher on the S&P 500, but despite yesterday’s lower volume on the NASDAQ Composite, it has had a number of distribution days over the past 20 days. On a technical basis, the Dow and S&P 500 may experience temporary reversals in the days ahead as they approach old highs. Weak economic news out of Europe and a series of earnings misses by juggernauts GOOG, MSFT, SBUX, GE, and CAT are weighing on futures. Areas of leadership, such as the airline stocks, came under sharp pressure yesterday, and big-stock NASDAQ names like NFLX and AAPL have broken down as they have breached major moving averages on volume over the past several days. The action indicates that investors should maintain a cautionary stance as they keep a close eye on their trailing stops while avoiding the urge to chase strength in names that continue to act well. It is best to wait for pullbacks into logical areas of support before initiating long positions as a method of limiting risk as much as possible in what is admittedly a tricky and difficult environment. Scalper1 News
Scalper1 News