Not much to say today really. The bears have it but they couldn't do a convincing break of the 1085 region. A close of 1084.53 on the S&P is NOT a break. Remember, that TA is an art and not a science. So, don't get lost in the decimal points!
Lets have a look at DJI and Nasdaq to assess the damage done to the charts today. I am doing the daily review in a different style today.
DJI -
1) Closed right at support
2) Got stopped right at resisitance
3) Notice the relatively much higher volume in the recent down days
4) Stochastics oversold - This doesn't necessarily mean a bounce as oversold can easily turn into "more oversold".
My thoughts: A small bounce could be in the offering. But the high volume on the down days hints at a longer correction. A bounce should be taken as an opportunity to get out of existing longs and initiating short positions rather than getting into new longs.
QQQQ -
1) Right at two important support levels.
2) Volume is even more bearish than DJI.
3) A break of support could take it all the way to 40.5
4) Strong resistance at ~ 45
5) Stochastics oversold.
My thoughts: A small bounce could be in the offering. But the high volume on the down days hints at a longer correction. A bounce should be taken as an opportunity to get out of existing longs and initiating short positions rather than getting into new longs. Yes, this was copy paste from DJI :)
Position update:
Didnt have time to see the markets pretty much all day today. Got out of SWC at breakeven. Got into Boeing (BA) at 61.99. I had explained my rationale behind this move in the post late last night.
Good Luck out there! Will be back later tonight with some picks for the watchlist.
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