Futures are currently lower. Nazz -.04%, S&P futures -.05% at 1865 Dow futures -.045%.
The SPX is now down about 5.5% from the intraday highs to Fridays close. The daily charts have snapped, so looking at the weekly charts is probably more constructive at this point.
Short term support is 1901 and 1869, with resistance at 1929 and 1956.
On the weekly SPX chart I think good support comes in at, or just below the 50 day moving average. That’s not far at all.
Cleansing: The ultimate goal of Upsidetrader is to generate the greatest overall return for its subscribers. Thus, especially for the benefit of our newer subscribers, it’s time for a heads up. As long time subscribers know very well by now, the natural action of the stock market automatically “cleanses” our portfolio every so often. The last cleansing hasn’t occurred in a while, but we tend to get 3-6% corrections every so often. It appears that we are currently experiencing (or possibly just completed) another “cleansing.”
Actually, the conclusion of a “cleansing” has usually been the signal to become more aggressive.
The stock market is experiencing a lot of crosscurrents, which can often weigh the market down. Investors are still confused and thus, hesitant to commit more money. The market lacks a genuine catalyst right now, especially as we find ourselves in yet another earnings season. The bar for earnings by the way is very low this quarter and no one expects much. Be patient. Let the market sort itself out, while you stick to the game plan.
See you in the morning.