Support Levels Being Tested

spx

Stocks were down again today led lower by China which had its wost down day in eight years.  The Dow Jones went to its lowest level in nearly six months after patchy economic data and corporate earnings spurred declines last week.

The slide prompted heavy selling in European stocks, with the Europe closing 2.2% lower, its biggest one-day percent decline in a month. Germany’s DAX and France’s CAC 40 both shed 2.6%, while the U.K.’s FTSE 100 lost 1.1%. Commodities, including crude oil and copper, tumbled.

Nice way to start the week huh?  Utilities stocks were the only major sector to post gains.

You can look at last night’s post here to take a look at what some of the major charts look like in case you missed it.  The only difference is that they are all little lower today.

If you remember, this same scenario played out a few weeks ago when China first had issues.  Back then the market had the double whammy of Greece to contend with as well.

To reiterate my thoughts from last night, its no time to be a hero. Lets wait for things to settle and let the market come to us. Set ups will only become more attractive.

Some of my indicators are flashing oversold, others, well not so much.  Lets see what tomorrow brings.

See you in the morning.

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