1 Seems like we are finally getting that pull back. The only real question I have is if this will be vicious selling that ruins all setups. But I’m not expecting anything crazy.
First and foremost, Apple has significant support at 460. Not really expecting it to get that low, though. Yes, volume was significant and to the downside. And yes, there was a bearish engulfing. But I don’t think this holds in the intermediate term.
Next, we have the S&P. We are above the falling trendline from the 07 highs. And we have rising support from October. These are at about 1320 and 1300, respectively. Something really funky would have to happen for us to break below both. I don’t see that happening unless we have ANOTHER euro crisis, whereby CDS and yields spike.
Regarding today’s sell off, bonds hardly moved. In fact, TLT finished down. Moreover, the Nasdaq held up better than most of the market, while the Russell 2000 underperformed, but did not struggle too badly.
TLT also looks like it may be in the first stages of giving out, as it is struggling to hold its trendline.
Lastly, buy the refiners on the dip. They are way overextended, but many have great fundamentals and a pullback would be beneficial. Also think that PMs will perform well if the dollar starts to relax.
One Response to “Relax, Bulls”
Hawaiifive0
Yes! All good points. Let’s see what happens though before we get too involved. I’m down to just one divy stock now and waiting to see how this plays out.