The S/P and Dow both broke down and closed below the prior lows set back in 2002, while the NASDAQ and Russell are considerably well off those levels. Nonetheless, the month of February was quite bearish. Earnings, Economic Data, and President Obama’s Stimulus Plan were all contributing factors in the month’s volatility.
Even though we are primarily swing traders, it is important to back out and review the indices and individual positions on a larger timeframe as prior levels of support and resistance can come into play matter how far out they may be.