Trading down for most markets and the ETFs that we’re tracking. We were looking for this to happen in order to fall back toward major support levels. Now we’ll be hoping for bounces off of these support levels, however, recent market action may mean that won’t happen. The next few days/weeks will prove very critical to see how the markets react.
GLD, the ETF for gold just got hammered over the last two trading days. If price breaks 128.00 look out below.
EEM, the ETF for emerging markets, closed yesterday at 40.86, right on the trend line. I’m looking for a bounce, however, based on market action over the past couple of days we might not get it.
FXI, the ETF for China, is fading into the lower trend line, and I am looking for a bounce off this support area to confirm a buy signal. FXI closed today at 34.92. Again, it may not happen as price action has turned negative … very negative.
SPY, the ETF for the S&P 500 index, also got hammered yesterday. We are still long. Down big time today but I say “it’s about time”.
We are still long AAPL and QQQ as well. Unlike the S&P 500, AAPL and QQQ are trading around support so if the buy signal was false our losses will be minimal. You can choose to be passive or you can choose to be active.
One or even two big down days do not mean the run is over BUT it does mean to be careful. Lots of selling going on. Maybe people are selling to pay their taxes … to feed the beast that has been propping this market up. Is the market just breathing heavily or is it just out of breath? Time will tell. What’s your sell strategy? I’ve got mine … that’s what I’m preaching … having a sell strategy.