Shake Out

12/11/2018 10:53 AM EST

Dear Friends,

Daily Chart of the S&P 500 large cap US stock index below:

  • Blue rectangle shows current trading range. We will not know the market trend until we breakout above or break down below out of that trading range.

  • Green line shows strong support extending back to February & April. Stocks bounced right off that support yesterday and rallied +500 Dow Jones Industrial Average points. A very good sign.

  • Red ellipse shows what looks like a shakeout, weak hands selling.

  • So far today we are seeing follow through on the upside – again, good news

What should you do?

  • If you are brave, I think you could buy here or increase your stock exposure. The S&P 500 index is about -9.5% lower than its 52-week high, so stocks are cheaper now than the September high. We have a triple bottom, which is bullish. And support at the 2580 range on the S&P 500 index has held.

  • If you are more cautious, wait until we break out of this trading range to learn where the long-term trend will be.

  • If you are concerned, dial down your stock % exposure.

And of course, call us anytime – 800-578-3181x0

Founded in 1992, Jackson Wealth Management is an independent, fee-only investment advisor. Founder George P. Jackson has been the CEO/CIO of the firm since its inception with the goal of delivering value to his clients and his associates. 

Securities Offered through Triad Advisors, LLC. Member FINRA/SIPC
Advisory services offered through Jackson Wealth Management, LLC. 
Jackson Wealth Management, LLC is an affiliate of Jackson Retirement Planning, Inc.
Jackson Wealth Management, LLC is not affiliated with Triad Advisors, LLC.

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