The bulls are trying to rebound today but haven’t had much luck as the bears have controlled the majority of the action. Yesterday’s pullback was slightly bearish and the bears are targeting the second wave of support. If tested, it will be interesting to see if buyers step in or if they are waiting for a much larger pullback which may or may not come.
Today’s economic news was slightly bullish as Housing continues to show a comeback but worries over Spain have Wall Street’s panties in a knot. There is also an ongoing sea battle between China and Japan, and the upcoming earnings could be uninspiring. Given the headwinds, a retest to support levels was a given and we have to be careful of a choppy market going into October.
There are still a number of traders who feel there is a larger correction in store but we will wait for the signs before counting the bulls out.
We have a lot to cover today as we have added 2 New Trades and there are some important updates to go along with our current trades.
As we head to press, the Dow is down 8 points to 13,449 while the S&P 500 is off by 4 points to 1,437. The Nasdaq is lower by 22 points to 3,095 and is below the 3,100 level.
Subscribers, check the Members Area for the updates and we will be back in the morning with a full report.