S&P - Where's the support?
It's about noon here on a Monday and the stock market is getting absolutely decimated. Just about everything is getting hit today and all I see is a sea of red. The only green I have on my screen is the VIX!
If you look at the above monthly chart of the S&P, you'll notice that there is no support at all. This is not a good sign for the market now that major long-term support has clearly been broken.
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3 comments:
roughly applying elliott wave to this:i feel wave 3 finished with the 2000 peaak,then wave 4 down and then truncated wave 5 up.so this looks like A.i plan to be going long soon for B and then short again for C.
Hi Kevin, great charts as always.
What do you make out of crude oil if you forecast S&P is likely to trend lower? Both indices seem to have high correlation.
Very good point George. I was thinking the same thing, if the S&P goes lower it will probably drag oil down with it.
I'm still going to trade my technical signals which is to buy oil with a tight protective stop just under the recent low. This is a very low risk trade with lots of upside potential.
Who knows, maybe oil and the S&P will rally... maybe both will trend lower or maybe they will decouple like they have done in the past and go their separate ways. I'm going to trade each market based on their own technical patterns.
Thanks for reading
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