Despite emerging of supply last week for 4 major US indices (S&P 500, Nasdaq 100, Dow Jones, Russell 2000), the attempt to have a correction was not successful. The close on Thursday’s was mainly a hammer (highlighted in blue) suggesting lack of commitment to the downside and that was confirmed by Friday’s bullish bar. Refer to the chart for the 4 US indices below:

S&P 500, Nasdaq 100, Dow, Russell 2000

The market direction is still up. Yet the market breadth does not improve yet and the price certainly is over-stretched, which are still the red-flags and is vulnerable for a market correction. Focus on the trade management is still the priority.

Meanwhile, check out the stocks that are set to take off for Week 28. Watch the video below to find out the trading plan and the potential low risk entry:

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