I’m watching the market very closely tomorrow. Why? Because if it does one little thing, it could signify major movement; the kind of movement that makes or breaks an investment account.
And it’s already incredibly close to that trigger. It won’t take much to push it over the edge.
That’s why you can’t afford not to keep your eyes peeled. If this happens tomorrow, it’s time to run for cover…
As I’m sure you noticed, volatility spiked in a big way over the past week. Starting last Friday, we saw some of the largest swings on Wall Street since Brexit.
On top of that, we also have to worry about what sort of tale Janet Yellen and the Federal Reserve will spin for interest rates this month.
Investors are clearly spooked.
What does that mean for you? It means that we could be teetering on the edge of an absolute free fall for stocks! It all depends on where the market closes tomorrow, and how much support can keep it from crashing through the floor…
Let me explain, starting with a chart of the benchmark S&P 500 stock market index (SPX), thanks to Stockcharts.com:
This shows the performance of the SPX over a few years, but I only want you to look at the action in 2016. That blue line is drawn in by me. It’s a trend line that’s been propelling the SPX upward.
Why does it matter?
Because if it dips below that trend line, it could easily lose a huge portion of buying support. And if that happens, get ready for falling stocks!
And as you can see in the above chart, the SPX has already crept under that trend line this week. But it’s not solidified until trading closes for the week.
So at tomorrow at 4:00 P.M. Eastern, if the SPX hasn’t made up ground and climbed back above that trend line, it may be time to run for the hills!
Now, the remaining part of the equation is the lines of support at 2,120 and 2,100 for the SPX. Think of those as the last line of defense against a drop for the stock market. A dip below those lines all but assures it.
But while the idea of that drops scares the vast majority of investors, it’s actually exciting if you know how to profit from it! And that’s what we’ll be walking subscribers of the C.H.I.R.P. service through…
Buckle up!
