• 679 days Will The ECB Continue To Hike Rates?
  • 679 days Forbes: Aramco Remains Largest Company In The Middle East
  • 681 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,081 days Could Crypto Overtake Traditional Investment?
  • 1,086 days Americans Still Quitting Jobs At Record Pace
  • 1,088 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,091 days Is The Dollar Too Strong?
  • 1,091 days Big Tech Disappoints Investors on Earnings Calls
  • 1,092 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,094 days China Is Quietly Trying To Distance Itself From Russia
  • 1,094 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,098 days Crypto Investors Won Big In 2021
  • 1,098 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,099 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,101 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,102 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,105 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,106 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,106 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,108 days Are NFTs About To Take Over Gaming?
Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

  1. Home
  2. Markets
  3. Other

Next Support Area

After a few sharp sell off days, the markets have put in a rather weak upside day and faded into the close. It looks like an inside day and that's usually a sign of continuation.

The daily chart above of the DOW reflects today was an inside day. The markets tried to rally early but faded into the end of the session. The next area of support is the prior peak at the price level of 10,100, which we should expect to test in the near future. Also, the RSI has yet to test 30 (over sold territory), which allows for more room to the down side on this leg.

The daily chart above of the SP500 also demonstrates the same qualities as the DOW, with a small support range just below current price levels.

Last week, I started some new short positions for my parent's trading account, and we've had some very easy and nice gains, and as always we've taken some chips/gains off the table We've also increased some and added a couple new short positions that look ripe for further downside trading gains.

So far, the move down looks impulsive, which would indicate wave A or 1 down, which indicates the move down is still on-going.

It will be interesting to see if the next support levels hold or not. That being said, the next low risk entry on the short side is a bounce up into wave B or 2. As always, I'm looking for form or price structure to confirm that view, which would support another leg down afterward, which is already indicated by the impulsive move lower so far. That's my take for now!

 

Back to homepage

Leave a comment

Leave a comment