Tuesday, August 25, 2015

SPX S&P 500 Daily Chart in -10% Correction Territory

The S&P 500 joins the Dow (INDU), Nasdaq Composite (COMPQ) and Russell 2000 small caps (RUT) with a -10% or more correction off its peak top. The SPX topped out at 2135 on 5/20/15. There are two other tops that were unable to overcome the May high forming a triple top. A -10% correction is 214 points sending price to the 1921 level. At the 1893 level, the SPX is down -11.3% firmly in correction territory.

As this is typed on Tuesday morning, a huge recovery rally is on tap. The PBOC fired the money bazooka a couple hours ago which will create a recovery. Stocks were already recovering before China's stimulus announcement. The SPX may gain as much as +4% to ditch the correction moniker so traders will be singing "happy days are here again." This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.