S&P 500 Hits First Resistance Area, Now Should Consolidate

NEW YORK (TheStreet) -- "Nothing will work unless you do"  -- Maya Angelou

It was not a bad Monday for select stocks. We also saw many new recent buy points hit -- but some of those did fail. We remain very overbought and some consolidation is needed.

We sold quite a few positions and are only holding a few which are coming out of the best bases.

SPDR S&P 500 ETF (SPY) hit $196.05 I've talked about $196 to $198 as the place where resistance should appear. Moving back below $196 was cause for me to begin selling.

I'm not looking for short positions, just booking some gains until new buy points emerge over the next week or so. We remain on track for a great summer.

SPY didn't do much today, but did print a small top bar today and couldn't hold above $196 so. A small correction looks to be here.

A move back to $193 would be ideal, and an area to look to buy again as long as it holds.

Have a great day!

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.

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