It’s not the end of the world. This action actually sets up the indices as a trend pivot pullback. If you’re looking to get long side exposure, your entry would be above Wednesday’s high.
All is not good in the world though. Interest rate sensitive areas such as Real Estate and Utilities continue to implode. And, selected other areas such as the Energies and Telecom have lost momentum.
Overall though, most sectors, like the overall market, remain in uptrends.
So what do we do? Nothing’s changed just yet: Continue to look to add on the long side. As usual, make sure you wait for entries. That, in and of itself, might keep you out of new trouble. On existing positions you know the routine: take partial profits as offered and honor/trail your stops higher.
If you’re not busy saving lives or doing other great things, come to the chart show today.
Futures are firm pre-market.
Best of luck with your trading today!
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