Friday, March 18, 2011

Resistance ahead. Trade Safely.

The market finally got an expected bounce yesterday, albeit a low volume one. The relative weakness in NASDAQ certainly deserves a mention and should be watched out for in the coming days. Despite the bounce yesterday and the futures being over 100 points up as I write this, the overall market charts still look very bearish. 1280 should be the first level to watch out for on SPX tomorrow. And of course further resistance, and perhaps much tougher resistance, lies ahead at around the 1300 level.



The NASDAQ as I pointed out earlier looks even more bearish. 


The last few days have taught us the importance of not being over-committed to any one side of the market. This is still a market that is moving more on news than on technicals. The volatility is great if you are a day trader, but it is important to keep your losses small if you are a swing trader. Take care of the losses and the gains will take care of themselves.
Take care and good luck!

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