Wednesday, February 3, 2016
All Eyes on Support for S&P 500
It's time to take a look at a shorter-term, close-up of that S&P 500 "DOOOOOM" chart that I've been posting, because the S&P 500 is testing support.
Try not to read too much into intraday action. Algos push the market around specifically to frighten investors -- the easier to harvest money from them. I would become concerned if the S&P 500 closes below that January low on a daily basis. My concern would crank to "10" if it closes below that August intraday low on a weekly basis.
Then again, a move lower would not surprise me, as earnings estimates continue to ratchet lower. In lieu of the Fed tapping a new firehose of free money, it all comes down to earnings expectations. And a too-strong U.S. dollar and weak economies overseas are definitely hurting earnings.
Good luck and good trades,
Posted by Sean Brodrick at 10:46 AM