In a scan completed after the market close and into this morning, I'm finding plenty of bullish looking patterns that look like they could work higher. And today the market will try to make it 21 straight up Tuesday's in a row.
This comes after the recent bout of selling in the S&P 500 which has marked 3 definitive distribution days, and 2 other days where volume was higher and the index closed well off the highs. Some leading stocks have undergone significant profit taking.
But the sheer magnitude of the move means there's still money looking to be put to work. So maybe we're simply going to see a rotation from some of the stocks that had big gains into those that haven't moved as much.
Many traders are looking to lighten up over the summer months as another period of choppiness (at minimum) or maybe even a moderate 5-10% correction (GASP !) is expected to develop.
All that said, for those who implement professional trading tactics there remain opportunities. As always,
use stop losses to protect your portfolio from big losses.
Here are some charts I put out on Twitter over the last 18 hours. Stock charts shown in this post:
BPZ, BECN, NAVB, DMND, MPWR, PETS, PHMD, QUIK
