While September is known as a bad month for stocks, September 1 is usually an up day, but stocks sold off hard. The question is how much more downside can we expect. Today's action brought the SP500 down to two levels of support: 1) the major median line, and 2) lower trendline of the minor median line. Below the 50dema and the 200dema are also strong support.
The bears were out in force today on CNBC. A bullish sign?
The McClellan Oscillator closed below -200 at almost the same level as the mid-August low, another possible indication that the pullback is nearing completion.
We are still are a long way from calling an intermediate term top, so patience is paramount.
1 comment:
As they say about baseball records, "records are meant to be broken" as are median lines & other support that work as long as the mkt is going up.
On the way down they're just like having a target on your back at a paint ball park.
And Tuesday's high volume enhances the probability that they will be broken.
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