The S&P 500 and Nasdaq both closed below their 50-day moving averages last week and had follow through selling this Monday. A lot of people are giving explanations linked to the news or worries over politics to explain them, but when today’s action is put into context with the action this month – and in the past few months – it makes logical sense.
When you understand the reason the market has traded weak recently, then you can make a trading plan to respond to it that makes sense for you and navigate this market with confidence.
If you are new to trading and want to understand how to read market trends better grab my book Strategic Stock Trading.
-Mike
