Market Report for Feb 27 2020
Nasdaq Composite +0.1% YTD
S&P 500 -3.5% YTD
Dow Jones Industrial Average -5.5% YTD
Russell 2000 -6.9% YTD
NYSE Vol: 1.3B
Nasdaq Vol: 3.5B
Key U.S. News:
S&P 500 closes lower as rebound effort seemed to have failed. Once again, there was heavy volume on the market but the buying was limited.
As you may recall from the last S&P 500 correction, this will typically last 20-60 bars so as mentioned yesterday, do not rush to get into this market. We are waiting for the DVI to be tagged or 50MA breakout. The DVI is the most likely. Until the reset, sit tight, wait and watch.
Many traders will have had their profits from the start of the year wiped out. The key element is it is the start of the year so, during the course of the year, we will be able to move with the money once the fear is removed.
So during the near term, we should expect to see swings in the market and more selling. Our job is to watch from the sidelines for a 50MA breakout or DVI bounce. A breach of the latter and we will be in a bearish bias and want to see a re-test of DVI or BrF for a continuation of that bearish bias. The 50A will also have to play a part in the downtrend.
Another stand aside day.
Lets go trade!