In the midst of Tuesday’s sell-off and after the S&P 500 broke through the 1173 support line the markets came off their lows yesterday, albeit most indexes still managed to close the day down approximately 2%. Once again buyers came in today with continued support as the S&P 500 eked out a gain even as the flood of negative global economic and market driven news from China to Ireland makes headlines. One must expect that the flow of negative news will continue along with pockets of positive headlines. This most likely will create more volatility in equities which could create “select” opportunities, keyword select.
Market technicians will continue to be watchful of key support levels as the Dow, Nasdaq and S&P 500 are trading in between their 50 and 200 day moving averages. If indeed one chooses to take advantage of these market retracements it is always good practice to apply the “scale in” approach a.k.a. don’t buy all at once.
Have a good evening.