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Indexes Bounce Large Off Major Support

Published 04/21/2015, 02:54 AM
Updated 07/09/2023, 06:31 AM

“No matter what happens, it is within my power to turn it to my advantage.” Epictetus

A few harsh moves lower today including one with Ampio Pharm (AMEX:AMPE) which I was holding but luckily it wasn’t a large position.

The biotech stocks can certainly make you a hero, but on bad news they can really sting as well, so I try to take smaller sizes in the more speculative ones which is a bit painful since I have to hold a larger number or stocks and it is more difficult to really watch closely.

Anyhow, markets bounced off major support levels very well and remain in their large triangle patterns.

Today’s bounce was on moderate volume while Friday’s move lower was on heavy volume.

That doesn’t really tell me much since we remain in the triangle pattern.

A breakout of this pattern needs to see large volume increases and follow-through to really get me excited.

SPY Daily Chart

ARCA:SPY didn’t get to the low end of this triangle as ARCA:IWM and NASDAQ:QQQ did with theirs, but a bounce was seen in all three markets today and that’s great news.

I didn’t sell any stocks Friday since mine held up well and markets remained within their larger patterns but I did have to take a couple losses today as a couple companies reported bad news.

We still remain setup for a break higher and so far, Friday was just to confuse and shake out traders who do not see this larger pattern or understand the strength this time of year can provide.

Enjoy your evening and some playoff hockey.

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