BRIEF UPDATE ON THE BROAD STOCK MARKET (2:15 pm EST)
The broad stock market is falling steeply today, and at the time of this writing (2:00 pm EST) the DOW is getting very close to last week's low. If that low breaks it could mean trouble for the markets. Another support level around 17,000 is even more critical as a close below there would mean the current cycle is pointed down and stock markets would be bearish for at least two more weeks (and possibly well into February). Critical support for the S&P 500 would be around 1960. Directional momentum in the DOW and NASDAQ remains mostly bullish, but the S&P 500 switched today to mixed bullish and bearish, which could be a warning. We will watch these support levels carefully now as we move into Friday and early next week. If these indices can hold above these critical supports, we may have a good buying opportunity. If they break we will have to switch to a bearish trading strategy. On the sidelines for now.
The broad stock market is falling steeply today, and at the time of this writing (2:00 pm EST) the DOW is getting very close to last week's low. If that low breaks it could mean trouble for the markets. Another support level around 17,000 is even more critical as a close below there would mean the current cycle is pointed down and stock markets would be bearish for at least two more weeks (and possibly well into February). Critical support for the S&P 500 would be around 1960. Directional momentum in the DOW and NASDAQ remains mostly bullish, but the S&P 500 switched today to mixed bullish and bearish, which could be a warning. We will watch these support levels carefully now as we move into Friday and early next week. If these indices can hold above these critical supports, we may have a good buying opportunity. If they break we will have to switch to a bearish trading strategy. On the sidelines for now.
RSS Feed