Technical Breakout Trading – We The Retracement At A Minimum

June 16th, 2009

Following some better than expected housing data, the futures this morning were trading higher. Clearly yesterday was a very clean and swift break out of the sideways action we had been seeing over the past three weeks or so. Energy tanked which was great for our energy shorts (minus the one bright spot that member know about in the energy sector). But, now that we have had such a huge sell off – only comparative to recent activity or course – we really need to stay below 930 or so on the S&P to keep this minor rally today in check. Technical analysis tells us that it’s completely normal and natural for securities to retrace moves and re-test prior resistance and support. Therefore, this may be nothing more than another opportunity for those of you who already missed going short to once again add some positions. The level in GREEN is the one we need to watch very closely.

 

spx14

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