10/24/2018 10:44 AM
Shake Out Tuesday – Bottom In???
Looks to me like we had a shake out yesterday in the markets and the S&P 500 index low has been put in yesterday at 2692.25. That’s about -9% off the September 2947 high.
That low is depicted as an orange horizontal line on the chart below. I have added green circles showing support at the same level in May and July.
The red circles show that the market is oversold on both stochastics and the percentage of stocks trading above their 200-day simple moving average.
What should you do?
No guarantees of course, but I do believe that the low is in (orange line).
Invest cash now on the sidelines.
Call us with any questions.