The indices all tested the 50 day SMA at one point today and have recovered off that test though SP400 and RUTX are lagging on the recovery. It is a rebound, but hard to call it a big recovery. The indices are holding their initial encounter with the 50 day EMA as expected. Just as a precaution, we banked some of the SAVE and SPY downside but left half the position in the event Monday turns out to be another downside leg.
Indeed, watching XLNX and NOW as downside entries for a partial position ahead of the close. Looking at the patterns there is downside opportunity. The 50 day EMA bounce makes this, near term, not a slam dunk. If the indices bounce a day or two and then stall, THAT is the best entry. At best we would take a half position at this juncture. support.
SP500 -7.91, -0.28%
NASDAQ -16.33, -0.22%
DJ30 -37.67, -0.14%
Jon Johnson, Chief Market Strategist
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