Indexes closed near session lows. The Dow Jones Industrial Average declined 0.5%, while the S&P 500 and Nasdaq composite both moved down 0.6%. The small-cap Russell 2000 index sold off 1.4%, falling sharply for a third straight session.
Stock To Watch list featured no new stocks, which makes sense given the session’s broad-based weakness.
Patience For Now
Patience is a virtue for now. In the meantime, keep close tabs on your winners. If they’re pulling back in light volume and finding support at key levels, there’s nothing to do. But if volume starts to pick up to the downside, treat your winners with care and don’t be afraid to take partial or even full profits.
Stock market bulls wouldn’t mind seeing an orderly, low-volume pullback from here. If it comes to fruition, it shouldn’t take long for new buys to present themselves. For now, avoid chasing the big leaders that are well extended from proper entries. That’s an easy way to lose money.