The last couple weeks have been crazy volatile in the markets. Talking heads on TV are taking both positions – SELL – BUY! This can be confusing for the beginning stock market investor. Our goal is to continue to provide our members the ability to make their own decisions. We believe that it is always best to follow the foot prints of the elephants (the big institutional investors). So how do we know what the big institutional money managers are doing in the market? We turn to the charts – the language of the stock market.
After over 6 weeks of downward movement in the market, the major indexes are showing strength at key support areas and beginning to bounce to the positive side. A clear example is on the S&P 500; the support level of 1250 has held nicely by the bulls and now we are seeing a climb back up. If the S&P 500 breaks and holds above 1280, this will be a good sign for the bulls. The next level of resistance for the bulls to break through is the psychological level of 1300.
The current market levels could make for a nice entry to the upside. A beginning investor that uses proper money management techniques may have a great opportunity to grow their stock market portfolio.
Keep your ear on the news and your eye on the charts – Trade Well.
Dinger
Leave a Reply