So where is support now??

Ok, Tuesday my support and decision point of $1870 failed and I decided that a 7% plus loss so far this year was enough. It was time to lick my wounds and try to find another safe point to reenter the market. But the first thing you have to find is support or where you think things should reverse and hold. Just like I told you in recent days $1870 was support and it was important to hold. So I went searching today to find the next two major support points. So let’s take a look.

Going back to 2014 it was easy to see that the next major support is $1814. That has to hold and today it did a nice job bouncing off that level and recovering just a little bit. It’s important over the next few days that this level is defended. If it fails, then you can expect price to fall quickly to $1739. I might be out of the market at the moment, 100% F-fund, but I will be watching for pivots, support, and price structure to help get me back in. After todays blood bath and low of $1810, which you can see here, we recovered to a close at $1829. Yes it was an ugly 1.23% loss for the day, but it could have been much worse.

 

So we are now looking for support to hold at $1814 and we are looking for a pivot low to form here and prices to reverse. Do not get caught up in the news, it will drive you insane. Watch for structure. If you were making monthly moves, you would have been safely in the F-fund since February 1st and missed the 5.6% drop in prices and caught the 1% gain in Bonds. I didn’t follow either, so I’m the fool.