BALTIMORE ( Stockpickr) -- Stocks are in make-or-break mode this morning, after a 1.38% decline in the S&P 500 shoved the index down to a key technical level. Now the question is whether Mr. Market will continue dropping from here -- or whether he'll quickly reverse course. I'll try to answer that question today.
It's an understatement to say that this rally has been orderly. Since the calendar flipped over to 2013, the S&P has only had nine two-day down "streaks" -- and it's only posted two stretches in 2013 of three straight negative days in the big index. That makes today's price action pretty significant; it would mark the third time this year that the S&P has moved lower for three straight days.
You know things are going well for investors when three down days is an event.More important is where the S&P 500 index is right now. With yesterday's close at 1,608.90, the S&P is just a few points above a key support level that's been in place for months -- more on that in a minute. The critical nature of today's price action is creating a big opportunity in individual stocks as well. That's why we're taking a technical look at five big tradable names right now. If you're new to technical analysis, here's the executive summary. >>5 Rocket Stocks to Buy in June Technicals are a study of the market itself. Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms and individual investors to get an edge on the market. And research shows that skilled technical traders can bank gains as much as 90% of the time. Every week, I take an in-depth look at big names that are telling important technical stories. Here's this week's look at five high-volume stocks to trade. >>5 Toxic Stocks to Unload in June
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