After the volatility we saw 2 weeks ago it appeared some consolidation was due for the markets but buyers showed up once again and longer term uptrends continued to exert their strength. The higher we go it seems that more people are focused on picking “the top.” The correct focus should continue to be objective observation of the market action for clues of weakness and to manage risk, but that is ALWAYS our job, to manage risk!
The market outlook continues to be bullish and the video below outlines some crucial levels of support in $SPY $QQQ $IWM $XLF $SMH to measure the strength against. A strong uptrend doesn’t mean throw caution to the wind and just buy anything at anytime, we still have to be aware of low risk entry levels and not expect to be bailed out of mistakes by a strong market. Eventually all trends end and then reverse, don’t allow bad habits to form during the good times. Offense is easy in a bull market, but a strong defense allows us to hold onto our profits and continue to grow our accounts in any environment.