The sharp rally we saw on Friday followed through on Monday, but appears to have run out of steam. In this new short video, I show you what you should be looking at in this market and how I think it should be played.
The battle between the Bulls and Bears continues with very choppy trading action. The rally from a potential double bottom is cause for concern for the Bears, however the Bulls are in a similar situation as they have to prove their case with sustained market action.
In my new video, I outline some of the key levels that I think are important in the S&P 500 market. Volume continues to to be light and that is why the markets are moving around and are so volatile at the moment.
This month is shaping up to be a strong negative month for the global equity markets. The S&P 500 is down a whopping 11.34% for the month and 3.9% on the year. The DOW is a little better-down only 9.58% for the month and 3.45% for the year.
Despite today’s late covering rally, the bigger picture indicates that we are down overall on the week and the month.
Here are the levels that if, and it is an if, the markets break, then the stock market bulls will throw in the towel.
Here are the key levels of support for the month of May for the major indices:
SP500 - 1044
DOW - 9,835
NASDAQ - 2,100
Let's see how the markets act for the balance of the month. It will be interesting.
Every success, Adam Hewison
This past weekend I visited some friends in Texas. The reason I bring this up, is that these folks are very worldly and very smart. During my visit, the conversation naturally turned to the market and what is going on.
Here is what I took away with me when I left Texas: There are a lot of very nervous people in the market. I think this nervousness has been obvious in much of the market action, and it is not likely to go away anytime soon.