Markets Around the World Sell Off
| February 4, 2010 | Posted by admin under Stock Market Analysis, Swing Trading Ideas |
Markets around the world in all different asset classes fell through the floor today. On the weekend I posted that key support had broken in the US equities markets and that moves up to resistance were selling opportunities. That is still the case. The market did pull back on Tuesday almost exactly to 1104, which was a potential turning point. The market rejected that level on Wednesday and it is highly unlikely we will see that level again for some time.
Today’s sell off took the S&P 500 to just above the next support level (see the weekend chart) which is at 1061. Support beyond this is at 1052, 1045 and 1030. Movement below one of these support levels indicates that overtime the level below it is also likely to be tested.
The chart has been attached again. A few of the trendlines have been removed up near the top to clear it up a bit, but everything else has remained as it was on the weekend (on the weekend I used an hourly chart though, this is now a daily). The descending blue fan lines were very accurate on the mid-week retracements, and may continue to be a good indication of where pullback are likely to stall.
S&P 500, Daily Chart
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Have a great weekend,
Cory Mitchell, CMT
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[...] was rather interesting. I had support pegged at just above 1050 and at 1045 on the S&P (see Markets Around the World Sell Off), it moved through the first and aggressively bought off the latter setting up a bullish daily [...]