Investors were hit with a wider trade deficit, worse-than-expected unemployment benefit claims report, along with the reports of police gunfire at protesters in Saudi Arabia. With all the disappointing economic news, things don't seem to be looking up.
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No question about it, today's market action caught many people by surprise, but it's important to understand what happened and why it happened from a technical standpoint.
As many of you who have been following my videos already know, MarketClub's “Trade Triangle” technology has been neutral on the indexes since January 20. We have also been bearish on gold since the 22nd of January. So what is happening to the markets?
The recovery in the indexes from March of '09 was basically just that, a recovery. Our Fibonacci retracement indicator was spot-on and points to a potentially more negative down move in the future. All of the indices managed to recover back over 50% of the gains before this recent downturn.
Today, I want to share some significant levels to look for during the balance of February. If these levels are broken and taken out, it would indicate a much more serious problem for the equity markets.
Here are the levels on the indices: S&P 500 key level to watch 1,029.38, NASDAQ key level to watch 2,024.27, and Dow Jones at 9,678.95.
In the case of spot gold, the key level to watch this month is 1,044.20. If the gold market goes below that level, it will signify further retrenchment for this precious metal.
Make no mistake about it, today's action is not positive for the equity markets. However, providing the levels we mentioned above hold, then you could say we're in a broad trading range and we expect the lows to be tested. I, for one, am cynical that this is going to happen.
You may also want to take a look at my recent gold and crude oil videos. Cyclically these markets are right on target and acting the way we expected them to act.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
There's no doubt about it, for the past four weeks the S&P 500 index has been trapped in a trading range.
In my new video I show you a key level to watch this week. If this level
is broken, it will be a game changer for this index.
As always our videos are free to view and there is no registration
requirement.
Enjoy the video and let us know what you think on our blog.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Well here we are in the month of December and things can get pretty tricky this month. For this reason, I wanted to produce a video that I thought would be helpful to you during this time.
In my new video I show you the exact points that we’re looking at for a major trend change in the S&P 500. I also point out the exact number that will show an exit point, but not a major trend change, in this same index.
As always our videos are free to watch and there is no need to register and we look forward to your comments.
President, INO.com Co-creator, MarketClub
Is the S&P about to fall out of bed or is it headed higher?
In my latest video I hope to answer those questions and show you what I think could happen to this market in the near-term.
There is a fascinating cycle at work that I want to share with you. If this cycle remains in effect, we could be looking at the beginning of a turn-down for this index.
As always our MarketClub videos are free to watch and there is no need to register and we’d love hearing your feedback on this video on our blog.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
