Caterpillar (CAT) has been a stock that made a steep move recent upmove before losing steam and pulling in in recent weeks. The stock is due for a correction and is acting like a stock ready to retrace much of its move with an ascending bear flag after an initial down move. Look for a close below the prior day's low at 44 for a move equidistant to the first leg of the retracement. Other stocks that had been strong during the rally higher look ready for a retracement, the best including BIDU and AAPL, which retested the rising trendline it recently broke before bouncing down.
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