Do you have money in a retirement fund of some sort? Is a chunk of your cash in mutual funds right now? Are you a trader or investor of any kind? Would you be affected by a stock market crash?
If you answered “yes” to any of those questions, you need to know the 2 most important numbers for the stock market right now.
These 2 numbers could tell you everything you need to know about where Wall Street and YOUR money are headed…
Wall Street Informer Publisher Jim Samson discussed the temporary market bottom in his column last week, and now I want to expand on that conversation in light of the stock market’s recent upswing.
Since the severe drop-off for Wall Street in August we’ve been in a transitioning market. It simply hasn’t settled enough for us to have a clear view of the trends, direction, boundaries, etc.
But as the market has evolved over the last couple of months, we now can see 2 very important numbers that could be the make-or-break points…
- 2,000
- 1,860
Let me explain – here at Wall Street Informer we use the S&P 500 stock market index as our benchmark representative of the overall market because it incorporates a wide variety of different securities that provide a good reflection of the market.
Let me show you the chart for the S&P 500 with lines drawn at those 2 numbers on it (from stockcharts.com)…
Within those 2 lines, which are set at 2,000 and 1,860, you can clearly see the market bouncing up and down.
Sure, this gives us a great idea about when we should expect to see a significant bounce one way or the other – this just happened last week when the market came very close to 1,860 and then immediately jumped every several days in a row.
But what I’m more interested in is when the market is able to break out of this little box one way or the other…
If it can climb above 2,000, it has a chance to climb up to previous highs. If it falls below 1,860, the market could be headed straight down as a powerful bear.
Keep track of the market in relation to those 2 numbers, and be ready when it finally breaks out.
