Thursday, June 24, 2010

Stocks Continue To Sell Off

This is the fourth consecutive day that the stock market has closed lower and is now testing the .618 retracement level. I actually bought a few things today at around 1:00 based on a short-term 5 minute inverse head and shoulders pattern. The market did rally for about an hour but then sold off into the close making new lows for the day.

Surprisingly the stocks I bought didn't sell off that much and are holding up quite nicely (for now). I bought a few of the international ETFs as they are clearly showing relative strength vs. the S&P.

If the S&P continues to sell off tomorrow, I may just exit my position regardless if they are holding up well or not. If on the other hand the S&P does bounce off of the .618 retracement level and begins to rally, I may add to my position. For now the momentum is clearly to the downside and I do not want to fight the market for more than a day. Let's see what happens tomorrow.

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