The message of the market this week was real clear, it was indecision. The 50 day moving average was tested and held once again in the $SPY So far, the bounce from that level is uninspiring as the markets were unable to hold above their 5 day moving averages. The mixed messages from various timeframes makes it a difficult environment.
It is a common mistake for traders to continue to push their bets and try to force trades in a choppy environment when they should be doing just the opposite, SLOW DOWN! Knowing when to be more selective in your trades and reducing position size is what smart traders do during periods of market indecision, is that what you have been doing? The video below takes a look at key levels for the markets and follow up on some ideas posted Thursday night.