Knowing When to Trade vs. When to 'Pump the Brakes'

This week is still loaded with potential volatility.

Technical Edge 

• NYSE Breadth: 45% Upside Volume

• Advance/Decline: 39% Advance

• VIX: ~$14

Readers, I want to remind everyone of one thing. After we have nice runs (be it in the indices or with the individual stock setups), it’s always prudent to pump the brakes. 

That’s even more true when we go from a good stretch into a busy week like this one, which had the CPI on Tuesday, the Fed on Wednesday, retail sales today and quarterly Opex tomorrow. 

Also remember the big expirations like in March, June, September and December can take more than a day to play out, so be aware of the potential choppiness the rest of this week. 

IWM

So far, the $184 area has been support after the Russell’s big upside rip. Let’s see if the IWM can hold this area and the 10-day ema on a pullback. 

That’s 1880 on the RTY, for what it’s worth.