Stock Market Trends: Monday Morning Stock Market Blues?
We don’t want to scare anybody, but we see no clear way up right now. Unless some unforeseen game changing event occurs, this market appears to be headed lower, maybe a lot lower.
All of our measuring sticks are saying stay the hell away. For example, our market momentum indicator is at negative levels we haven’t seen since the tech crash in the early 2000s. The sell score is growing in our leadership model and the 3 main index charts look sick.
DOW, NASDAQ and S&P 500 Technical Analysis
Looking at the charts, our x-rays say that the S&P 500 may be on a collision course with 1000. The NASDAQ could find support at 1900; next stop after that, 1800. We don’t even want to talk about what happens if the NASDAQ closes below 1800. That movie could be a rated-X for too much bloodshed.
As you see on the chart below, the DOW appears to be headed for 10,000. We could have a case of uhh oohhh if 10K doesn’t step up and make a stand.
That doesn’t mean rallies can’t happen. In fact, The Correct Call wouldn’t be at all surprised to see a sudden move to 10K on the DOW followed by a sharp and brief uptick early in the week. We are currently receiving an “oversold signal.” Traders with nerves of steel might think about a quick trade using ProShares ULTRA DOW (DDM) if the DOW hits 10,000 intraday and bounces. DDM provides a 2:1 return on the DOW’s upside. If you decide to make this move, DO NOT STAY LONG OVERNIGHT as conditions heavily favor a lower market.
Tags: buy signals, Dow, momentum indicator, NASDAQ, s&p 500, sell signals, stock market trends, technical analysis
