Trading the Correction in Stocks

Stocks retraced, though not at the level we thought they would. We anticipated they would catch support at 3264 but it looks like they found support two technical levels lower at 3241. This is why it is important to keep narrow stops and hunt the best entry price. You can be right about a trade but just get the wrong price. It is difficult to say what stocks will do next, but if this is still a sideways corrective phase, we should anticipate the S&P to feel out the upper bound of the range again. This would imply for stocks to test at least 3329 again. The Kovach OBV has shown massive bear momentum, so be careful here.