Hello! Here’s what’s happening in the market today…
It was another day of selling yesterday as the S&P 500, the Nasdaq, and the Russell 2000 sank well below previously establish support levels.
Despite the positive earnings report from BAC.
You can see the breakdown in this long-term SPY chart plain as day.
The Nasdaq has officially entered correction territory yesterday. It’s more than 10% off of its November highs. It joined the Russell 2000
TLT, a bond ETF, bounced as investors seek safer returns. Gold is rising, and even bitcoin has ticked up off of support at $40,000.
My indicators don’t show any strong signs of a reversal any time soon.
The VIX is holding at a low level. Perhaps we are facing a slow decline instead of a crash.
The put-to-call ratio is neutral. That means the market is free to follow the path of least resistance. Currently, that’s down.
RSI for all indexes is oversold. But we’re far enough below support this could just cause a dead cat bounce.
Most stocks, over 65%, are trading below their 200-day moving average.
I’m watching for 70%+ of stocks to reach the bearish level. That will likely start to signal the bottom of this sell-off. It could take months.
As January goes so goes the year….
It could be a long year for the markets.
Futures are up this morning. I’m watching for more selling.
*IMTE is on watch
*GMVD is on watch