This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

S&P 500, Stocks Are Overbought, Blowing Off Steam Right on Schedule

NEW YORK (TheStreet) -- "Although it's admirable to be ambitious and hard-working, it's more desirable to be smart working." -- John Maxwell

We saw the weakness really kick in today in the S&P 500 (SPY) and the markets in general.

It had to come. We were very overbought and the signs were pointing to lower. That's what we got today. The S&P 500 SPY ETF hit the $193 support area, but it hasn't yet bounced that much. We could be looking for a bit more downside.

SPY hit very near $193 but didn't bounce, as I'd been hoping. This tells me we have some more downside to go.

The 21-day moving average -- at $192.33 -- and support at $192 are the next destination if we break $193.

We tried a few select stocks today off support levels, but they didn't bounce. So I got out right around cost.

It's worth a shot off major support levels, but I have to be quick to accept the fact that I was wrong. That happens all the time, but I admit it quickly and get out before an real damage occurs -- unlike so many traders who keep hoping they are right.

Hope kills an account quickly.

I talked about not doing much in Wednesday night's letter, but I got a little carried away this morning with a few stocks who were looking to breakout like SunPower (SPWR) and Tesla (TSLA). They both failed, and I was out at cost or for small losses.

It's not the end of the world, but I still kick myself since I said I'd not be doing much for a few days. I don't know why sometimes I can't listen to myself but that makes this trading game so great.

It is never the same, and always a constant education and learning experience.

Have a great evening.

Why Amazon Loves Local -- and Why It Absolutely Shouldn't

4 Rising High-Yield Dividend Stocks to Buy on Your Road to Wealth

Apple Is Regaining Its Momentum After the Stock Split

High-Yielding Seadrill Will Sail Through Difficult Waters

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SPY $211.65 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs