It has been a while since the market has experienced a down day of more than 1%. Today, lot of stocks reversed with big losses. This bring out all those talking heads that been proclaiming the market is overdue for a correction. Whether or not today's price action is the beginning of a correction, it should at least serve as a reminder to all the market participants that it can get ugly when this market reverse direction.
Based on the Dow Theory and the recent confirmed 52 weeks high for the DJI, the DJI could make at least one more new high before it tops out. How deep and how long this pullback will last? No one know. Just watch the price action and those resistance turned support levels, and trade what you see.
Here is a brief video reviewing the latest price action for AAPL.
Click here to video the video if you do not see a video player on your screen.
