April 28, 2010 by ingrid_mueller
Yesterday, I mentioned that CREE and LULU had lined up to go long providing the broad market and the individual stock were moving up on stronger volume.
However, futures indicated that the market would open down and later in the morning we saw a 100 point drop ending the trading day with a 213.04 decline.
The DJIA dropped below resistance of 11,200 and now sitting just under 11,100. Both the NASDAQ and the S+P 500 dropped below previous levels as well.
Since all three indexes have been overbought since mid-February, this sell-off may generate new entry signals.
We saw heavy profit taking on many of the stocks on our watch list. Now we will wait for clear market direction.