The chart below is the S & P 500 support lines. Red lines are resistance, if the market breaks above it on a weekly closing basis, we have a bull case for the market. A break below green support lines, the bear will roar.
Below this summary I have the details. Given above we are about 2% striking distance downward to first support, but if broken, another down of 20% from current levels on the index. That level if ever broken is entering the realm of panic. On the upside if sold today, you would 'miss out' on 10% gain before the all clear to buy.
Details
As I write this, S & P is at 390, the first major support line is at 383ish. A break below will have a next support at 300-315 range (depending on time). That is material support and should have a multi year recovery. Breaking below that is dismally lower at 120 ish. ( depending on time).
On a positive note a break ABOVE 429 is very bullish, and on a closing basis a good risk to buy. Obviously anything above the all time high is pure bull run at 481.
Action
Take note of the levels above, they are critical for the health of your 401K.
NOTE: I Purchased RGLD today at 90, since the Dollar is strong, euro weak, gold is weak. For risk v reward we need stronger dollar, weaker euro, weaker gold price. All have moved to extremes already, I am trying to catch a falling knife. :)
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