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.

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