by winston » Mon Feb 05, 2018 2:01 pm
CHARTS
What do you say about these? Breaks of support for certain, and now you start looking at potential bounce points. It is a game of patience on this first selloff to see where it bottoms, being ready at each point with plays to participate in the move.
NASDAQ: Was in a decent test along the 20 day EMA but broke down through the 20 day on the close. Of course volume ballooned to the highest since the December expiration. Logical support at 7100 to 7068, then the December peak at 6995. Bare minimums for the selloff I would think, but for now those are just levels to watch for a hold and bounce.
A rip below the 20 day EMA Friday and want to go ahead and get the trip to the 50 day MA or
December peak out of the way on this move. That will be a good scare-off selloff.
DJ30: Definitive break lower, only the sixth ever 600+ point loss on the Dow. Heading to the 50 day MA (25,000) to the December consolidation at 24,860 as a logical first stopping point.
SP500: Similar to DJ30, SP500 crashed the 20 day EMA in a big way. Higher volume; oh, sellers were in the majority. Surprise. The 50 day MA looks logical at 2725 on the high end, 2685 from the December lateral consolidation.
Source: Investment House
It's all about "how much you made when you were right" & "how little you lost when you were wrong"