Well I’m sure that today shocked more than one of you, so let’s take a look at the daily damage. Monthly we have absolutely no changes until January 31 into February 1. So longtermer’s do not sweat it yet.
Just so you know up front if you are new to reading my blog, I have no idea what caused the market to tank today because on days like this, I never ever read the news or listen to it. Now is a time of insulation. I almost wish I could stay at home and not go to work tomorrow because I know someone will come up to me ask what happen in the market or what caused it? I really do know what caused it, but your not going to like the answers. There was more supply than demand. There was more sellers than buyers. I think you get it.
Looking at the one minute chart above of the S&P 500, it is east to see that at 12:30 the selling started and drove hard down until 3pm. There it settled and there is stayed.
The S&P 500 fired warning one today but is far from the bailout point of $1731. Monthly bailout point is currently $1708, so we’ve got a long way to go.
Small Cap also got hammered but is safe. No warnings fired.
International is safe and no warnings were fired.
On the daily chart, bonds fired a buy signal today. So if you are going to take this, then price has to hold above $107.14 by 11:30am. If it is below that point, then the buy signal is null and void. On a monthly chart, the buy level is $107.74. But in order to use the monthly buying rules, today would have to have been January 1st. So I will not be buying Bonds tomorrow, but those that want the early daily buy signal, there you go. It’s a buy.
Hard not to panic on days like this, but this is why we use charts to help us make logical decisions. It is possible that things will get ugly, but why not wait to see for the charts before we knee jerk out?
Stay away from the news.
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