Market Outlook for Tuesday
Tomorrow, for me, is the ultimate test. If we push new lows from today’s lows, I think we have a confirmed market top. The question from this point forward will be how far? I will bring you some in depth analysis of where if we get this confirmation, but let’s not jump the gun yet.
The weekly chart still needs to confirm the top, technically speaking, by having the CCI close with a confirmed sub 100 level reading. I think it will happen if tomorrow we push and close at new lows, but again, let’s still stay cautiously bullish until then.
Many rumors are flying around and if they are proven false, these pullbacks should reverse. However I would LOVE to note to you that not only has my Weekly Outlook been helpful calling today’s pullback, but I also called out AIG being a turd stock. What did it do today? Fall almost 7% from the previous close, and even more from the intraday highs.
For tomorrow, watch for new lows, a close below today’s lows, and for VIX to close above 25. If these three things happen, I think its safe to call for a bearish weight to your portfolio. Until then… Stay tuned!
Good luck and happy trading!
Disclosure: No Positions