Pre-Market Update. New S&P500 pullback target.
Notes: The market should pullback in an ‘orderly’ fashion, however that does not mean we could not see a ‘shakeout’ of some sort. Continued…
After further analysis I believe we are in for a multi-day consolidation of the gains made on Monday. The rate at which prices have advanced is not sustainable for any length of time. Therefore if we see another 200+ point day on the DOW we are likely to see a sharp sell-off too.
I would prefer to see a quiet day today followed bya sharp sell off in the next few days. That would be both healthy and a good sign for the market.
Key levels to watch: 740 on the S&P500, 7400 on the DOW. IF we should close below 7370 (the trendline breakout from the falling wedge pattern) on the DOW I would be concerned that this entire rally attempt will fail completely.
I will start accumulation positions mentioned in my update from last night if we see lower prices today. I will make quick posts when I do on each buy.