S&P 500: What Will Break This Market?

The S&P 500 ETF (NYSEARCA:SPY) has been moving up nicely through January.

What can break this market?

If the SPY ETF were to hold below 260 or 261 that would probably crack this market.

What could do it? At the moment the market is reacting positively to earnings news. Bad news is good for stocks, good news is good for stocks.  Investors have grabbed any piece of good news to buy stocks.

Can it last? Fundamentals haven't really improved so we still might be in a bounce from an over-correction from a Q3-Q4 earnings slowdown. Investors are probably buying hoping for a 2nd half pickup. If the trade war gets resolved, great. If not you probably don't get that 2nd half pickup.

In the meantime we should respect the market.

There were a few moves in the last week that started down, tested 261 but held. So until proven otherwise we're still moving up. But a break of 260-261 would signal a change of direction after a nice move.

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All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless. We have no holdings in the stocks mentioned unless otherwise noted.

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