While the long term trend remains up, the intermediate term picture remains unclear. I stated last week that if this week's price action declined below last week's low, that there would be a high probability of a further decline into one of the support areas below. As you can clearly see on the weekly SPY chart; that happened. The most immediate support level is the August low at 163, then the 40 week moving average at 159.76, then the 156-157.50 level.
CONCLUSION
While anything can happen in the market, after last week's price action, now is not a good time to be establishing a new position in the market if you've been 100% on the sidelines. And IMHO it's a good idea to either scale out of your positions or hedge if you've had most of your investment capital in the market. Have a great weekend!
No comments:
Post a Comment