Where Will the Stock Market Find Support?
Kevin B. Spires, CFA, FRM
Kevin B. Spires, CFA, FRM
SPY has broken down through the bottom of the uptrend from the lows reached last October. Where might this correction end?
The market is clearly oversold as the 20 day Stochastic shows on the chart to the left, so what is really important is a point where buyers will want to enter. The 200 day SMA is at about 1280 on the SPY and the 38.2% Fibonacci retracement of the whole move from 1099 to 1418 is at 1296/97. Last October's high was 1286. I expect the market to find support somewhere in the 1280-1297 level and bounce back towards the 1340/1350 level from there.
Disclosure: Bellaire Capital Management, LLC owns SPY on behalf of its clients.
This information is neither an offer to sell nor a solicitation to buy securities. Forecasts, estimates and opinions stated are my own and the data presented is for educational purposes only. Investments involve risk unless otherwise stated. Past performance is not a guarantee of future results. Be sure to first consult with a qualified tax and/or financial adviser before implementing any strategy discussed.
The market is clearly oversold as the 20 day Stochastic shows on the chart to the left, so what is really important is a point where buyers will want to enter. The 200 day SMA is at about 1280 on the SPY and the 38.2% Fibonacci retracement of the whole move from 1099 to 1418 is at 1296/97. Last October's high was 1286. I expect the market to find support somewhere in the 1280-1297 level and bounce back towards the 1340/1350 level from there.
Disclosure: Bellaire Capital Management, LLC owns SPY on behalf of its clients.
This information is neither an offer to sell nor a solicitation to buy securities. Forecasts, estimates and opinions stated are my own and the data presented is for educational purposes only. Investments involve risk unless otherwise stated. Past performance is not a guarantee of future results. Be sure to first consult with a qualified tax and/or financial adviser before implementing any strategy discussed.
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