For the past two weeks I have been warning about a pull back in the overall stock market. You can read my previous post here and here. As I predicted (and no I am not ALWAYS right) the market has had a small pull back over the past two weeks falling from 1460 down to 1410. Take a look!
Support has been established at 1400 and the MACD indicator is still clearly in a down trend, therefore we can assume that the market still has farther to go. A 10% pullback from the most recent high would put the S&P 500 around 1320.
BUT WAIT A MINUTE!
Nothing runs straight up or down forever. Just like a sprinter you have to take a breather. The chart below is a 60 minute chart of the S&P 500 which charts the price of the S&P 500 every 60 minutes instead of daily. I use the 60 minute chart to PREDICT SHORT TERM moves in the market.
Over the past 4 trading days the 60 min chart has shown consolidation around 1418 and 1408 while the MACD indicator has started trending higher. This indicates we SHOULD see a small bounce in stocks. We could see a bounce as high as 1435 before we see a move lower.
As previously stated I’m keeping an eye on DIVIDEND KINGS and will pull the trigger on a couple if they get within my buy up to price.
Here’s to our Wealth!
This weekend was absolutely awful! I was on the road for 6 hours and after the first 30 minutes every gas station I passed turned into one big giant can of Monster =) #addiction