Market Report for Feb 26 2020
Nasdaq Composite -0.1% YTD
S&P 500 -3.2% YTD
Dow Jones Industrial Average -5.1% YTD
Russell 2000 -5.8% YTD
NYSE Vol: 1.4B
Nasdaq Vol: 3.5B
Key U.S. News:
New Home Sales
EIA Crude Oil Inventories
Stock market drops another 3% on coronavirus fears and now the S&P 500 broke the support mentioned in yesterdays MaR, it looks like price is heading to the DVI. Due to the proximity of the DVI, we want to stand aside until this is either hit pr price starts breaking resistance.
The move we are experiencing is not unusual. With every big move, we will go through a period of pullback or consolidation. A year ago until recent weeks, we have experienced big moves and the market has found a reason to rest, namely the coronavirus fears.
Remember, when everyone is fearful, look for those opportunities. Now is the time to wait, watch and pounce when the market has shown strength.
In the stock market, price moves down faster than it moves up. So, reaching the levels we were recently at, will generally take longer than the move down. The stock market takes the elevator down and the stairs up. So, we have more time to watch for the accumulation.
Let everyone quibble over the short term moves and once the market has given more of an idea as to what the next direction is, we can start to slowly position ourselves once again, be it long or short.
Lets go trade!