Look Out Below, Folks…
Welcome to today’s Rude Awakening…
We’re looking at a huge down day in the markets.
The Dow is down 730 points, the S&P down 80 points, and the NASDAQ is down 330 points.
Look Out Below…
We’re facing the big technical indicator we’re always talking about…
We’ve broken below the 50day MA on the S&P.
This is a huge technical support area that we’ve fallen through.
So, we’re now looking for the next support level.
We do have a double bottom in this market, at the 3,200 level in the S&P futures.
You’ll see that chart in today’s video…
The question is, if we get there, will we hold it?
If not, look out below…
If we drop below that double bottom at 3,200, we could be in free fall.
What’s Driving This Massive Selloff?
There’s a lot going on in the US… obviously.
Markets don’t like chaos.
The housing market is a factor — mortgages are peaking, and real estate is the #1 driver we have in the current economy.
For the first time in a very long time, we are seeing a peak in housing demand.
This is NOT a good thing for the economy moving forward.
Another pressure point on markets is the resurgence of “lockdowns” in several countries in Europe.
Covid cases abroad and in the US are spiking, and the dreaded lockdowns we never thought we’d see again are back.
The virus doesn’t seem to be abating at all.
Any Good News?
There are some companies worth watching, for upside potential!
General Electric reported earnings way better than expected, and now the stock is popping to the upside.
AMD is another one to watch. They’re pushing to the DOWN side on news of a multibillion-dollar acquisition, but they also pre-announced earnings better than expected…
This might make for a great buying opportunity as well, with a stalling price and potential upside.
Have a safe trading day folks.
We’ll talk tomorrow.
Editor, Rude Awakening