Stocks slid to close sharply lower Wednesday after a report showed the U.S. trade gap widened, and foreign data to give a doubt on overseas demand for American goods. S&P 500 fell 32 points, to close at 1,089.47.
Now is the critical moment for the market to make a up-or-down direction for this rally since July, To maintain this rally, market has to bounce at 1084.52 which is the 61.8% retracement level from the low of 1056.88 to the recent high of 1129.24. The next support for the market is 50 days moving average 1087.57, about two points below today's close.
I really want to see the market finish the fifth wave rally at 1140-1150 before adding my short position, we still have a chance to see the final leg of this rally tomorrow if the market bounce at 1087 or 1084.
If you are my blog's loyal reader, you know I lean on the bear camp, In long term I believe the market will start the phase II bear market since 2007 as long as it establish the secondary high below the last high 1220 and break down the low of 1010 on July. However, in a short term, if the market can hold 1084 and rebound, there is possibility for the finally run of this rally.
Just watch 1087 and 1084 tomorrow, I may long this market if these supports are hold and rebound with extreme sell off mode.
No comments:
Post a Comment