The MARKETS HATE UNCERTAINTY and that’s where we are at currently.
That uncertainty can be summed up in a few words MID-EAST, from Libya to Bahrain and then some is what’s creating the uncertainty. Should Libya fall then some of the uncertainty will with it. We’ve all seen it before once some sort of certainty comes back into the markets the futures will be up big in after hours markets (think 1991 Iraq). When Libya’s Saturday Night Live dictator falls (and how), sure it could create a knee jerk down on the news event but keep in mind fast that a level of uncertainty will have diminished too.
But here is the catch, at what level will it start and when? Short term here we are tagging some technical levels so be aware.
We are all for in the face of fear errrr uncertainty around here but we aren’t for loading up the truck either on the long side until we see some stabilization. We’ll take it one step at a time and nibble for some long side exposure in some of the key leaders that are still intact.
Let’s look at a little index action right now:
Well folks here we are in the face of uncertainty at/below the 50 day average. See that thin blue line? It’s the next support level should this 50 day average level not stick. As you can see the Full Stoh’s (below the chart) are getting into the oversold zone much like last time so we are technically speaking getting close to some sort of level where stabilization could occur.
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The S&P 500 as usual looks a tad different but the blue lines and the 50 day are your guide. An event could be what it’s going to take to get this issue to the 50-day or even the 1275 support level. But that’s just one more bad day in the indexes and we are basically there.