All the major indices in the US market made initial lows lower than Monday’s close on Tuesday at the open. This blog entry is being written with a little over 2 hours remaining in the market. All the indices are at or above their Monday close as I write this. We may have finally found a dip low enough to entice some buyers to join the party.
The DOW (which the entire world watches, so consider a Japenese or European investor who looks at the US market from afar) made a low today of 10.5% off the recent high. The S&P500 was down 9.7% at the low of today and has rebounded. The NASDAQ was down 9.2% before bouncing.
My blog notes from last night in the members only update said to watch the 10% level as a possible bounce point. So far, so good.
“Since we have corrected about 8% off the high, I’d expect to see a group of dip buyers show up when the market has fallen 10% total. That would be around $258 on the SPY.”
The low was $258.70 on SPY. Not too bad. No guarantees that the bottom is in, but I think it is safe for a potential trade with a bounce. Know your risk before getting in, define your trade and the goals of the trade, and have at it if you feel inclined to move a little money into the market here. I personally won’t be investing ALL my cash reserves here as I feel there is a deeper low coming down the road, but a nibble wouldn’t be the end of the world if you know how to be nimble. Good luck. If you aren’t a subscriber and think comments like the above are helpful, look into joining the website. It is only $199 a year and has handily paid for itself since being launched in November of 2016.