Sorry for the pause in the action, but I’ve found that very few subscribers are “traders” and request such detail in my updates or posts. Most are just looking for the big picture, so I’ve been just going in that direction of late (and it is easier!).
That being said…One of my last posts was discussing a breakout above 2680 and targeting 2800. I’d say hitting 2791 is close enough for my purposes, so we’ll call that an accurate target accomplished. Now, we’ve back off all of 25 S&P points to 2766 and the investment media on TeeVee are getting their panties in a bunch over a “correction.” WHAT? 25 points is a correction now? What happened to 5% or 10%?
Did we hit resistance near 2800? Yup. Are we backing off and consolidating below that level to build up the necessary power to push through it? Most likely, yes. Note how each gap lower opening has been bought up quickly? That denotes strength in the markets.
Are their concerns? Yup. The NASDAQ is being held up by a handful of mega-cap stocks (FB, MSFT, AAPL, AMZN, etc…) and if any of them slip, it could help push this small consolidation into a more corrective (5-10% dip) affair. If you are a trader, perhaps protecting some profits or taking action to secure your gains would be wise, awaiting the next signal in the market it is ready to move. If you are an investor, nothing in the 25 point downturn in the S&P 500 has violated ANY technical level indicating trouble in the market.