The S&P 500 index produced a nearly perfect 61.8% Fibonacci retracement of the April-May correction. The rally reversed at this resistance area, which coincided with price resistance near the 1360 level and the 100-dma. Now the index is flashing a new lower high. Will the correction lower resume? Will the S&P 500 retest its June lows? What new catalyst can drive stocks higher in the face of a global economic slowdown and a weak Europe?
The market's don't have a lot of answers right now. I remain cautious on launching new positions. Although we did see three of our watch list candidates graduate to our active play list this past week. I am not suggesting any new trades tonight but we did add two new candidates to the watch list.
In addition, this is
a list of stocks currently on my radar screen as potential candidates to keep an eye on:
DISCA, BRK.B, S, UNP, TSO, MWW, TGT, ANF