The S&P500 has begun a corrective pullback in the market. We will be observing if it leads to further follow through or if the “buy on dip” traders will come in at the current levels. The S&P has finished a symmetrical measured move to the 1700.00 level, so this is an area where it would be very natural to see a full corrective pattern develop. We just need further evidence that a meaningful correction is underway. If you are concerned, this is a healthy level to be taking some profits off the table and raise some cash.
Traders and investors were cautious last week ahead of the ECB press conference that fell on the holiday Thursday as well as the monthly jobs numbers on the Friday. The S&P started pushing forward during the Thursday overnight session but paused and retraced briefly after the jobs numbers. That pullback was bought and to this point the bulls have been in charge. With this latest move forward the S&P is likely to continue higher for the near term....however we will be paying attention to the FED meeting this Wednesday and the uncertainty that always surrounds these economic events.
Many of the assets that we track have been exhibiting significant volatility as bulls and bears jockey for control. For the investor learning to trade the markets this can result in a rollar coaster ride of emotion. In this weeks market forecast we take a look at important support and resistance levels for stocks, currencies, commodities and bonds. These levels help the active investor identify turning points in the market for risk managment and profit taking. Be sure to click READ MORE and watch this weeks short video.
Market Forecast Video June 10, 2013
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The U.S. stock market continues to defy gravity lulling investors into a false sense of security and seemingly rendering our weekly market forecast obsolete however Patrick Ceresna our Chief Market Strategist made some great points in this months Market Timing Strategist Newsletter (www.markettimingstrategist.com)