Here is a review of the action in the stock market indices of last week. Overall it was the biggest dip of 2012. We violated multiple levels of support. As of right now we are resting on key support levels this week will give us an idea of where this market can go. If we can hold here and take out our first level of resistance that can put us back on track to retest our highs. If we violate our first level of support lower prices are most likely coming. Right now defensive posturing with cash preservation mindset is key as losses can pile up quickly in this type of environment as there could be multiple headfakes. Often its best to trade smaller and more defensive till better price action reveals itself.
S&P 500: -1.99%
Nasdaq Comp: -2.25%
Russell 2000: -2.68%
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