Fear Driven Move.
By Bennett Tindle February 6th, 2020
Last week I presented two possibilities in the S&P 500, both outlining a correction into 3150 – 3200. We’ve since found support near 3214 and are trending higher in an impulsive fashion. The market is showing broad relative strength, and the economic data continues to support our outlook. From a technical perspective we are facing some potentially key psychological resistance levels in the Nasdaq Composite and Dow Jones Industrial, 10,000 and 30,000 respectively, and should be watching those price points carefully. Tune in below to find out more.
When considering the period of expansion in the S&P 500, we can see a clear zone of upcoming resistance which should set us up for a larger market correction, similarto that of price action between August 1st to October 3rd 2019. Does this mean we are bearish? Absolutely not, in fact we will be viewing this upcoming correction as a much-needed period of consolidation, and an area many investors will be looking to re-deploy capital and get back onboard this train. We’ll be sure to keep you updated as price action progresses into our upside 3,380 – 3,400 targets in the S&P 500.
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