Many stocks that were in vertical uptrends and hugely overbought are coming in today (see chart of Steel Dynamics above).
It's natural to see a pullback, and getting stopped out of some shares, as we have today, is to be expected.
The most worrisome element, however, is the inability of the S&P to break through 1150-1160, and the Russell 2000 through 590-595. Trading ranges are always resolved one way or another, either up or down.
Of course, it is impossible to predict which way this one will go. That's why it's important to cut losses short and make some/lose little until a conclusive breakout/breakdown arrives.
Stephen
