While it would be
nice to see a bounce, there is no way
the selling if over. The question is
whether or not the S&P 500 can hold at
1310. If it breaks and closes below,
then the next level of support is 1300
and after that I believe the market
could retest the 200 day moving average.
Let's look at the 3 all important indices for this
week.
Below is the XLF sitting just below the all
important $15.00 support level.
I discussed this level back on July 8 .
The SPX is sitting at 1313.64. 1310 marks support.
1300 marks the last line of support. From there I
think it will be an easy drop to the 200 day. If the
market gets there, then it will be time to reassess.
I had indicated that this week, it would be
important to watch the NASDAQ. Today the NASDAQ fell
further than the S&P 500 and the DOW. This cannot be
a good sign.
.
All the indices are on the razor's edge. It will be a
simple matter, to fall off. If that happens, then
the previous fast, big rally will have been a great
disappointment. That will take the market some time
to recover from and could mean the July rally was
one of the shortest on record.
