Indicators have been spot on showing that a break from the rally would be coming. For now, we are still watching the buy-on-the-dip investor mentality for another bounce off of these levels. S&P 500 and major indicies will need to hold these levels of support in order to have a chance of a near-term recovery.
Earnings are spooking investors as it appears that expectations have gotten ahead of reality.
We are closely watching the dollar and the NYSE A/D indicator we have created to see how overbought/oversold markets are. Also, the McClellan Oscillator is near oversold levels, but also shows some additional downside is very possible.
Junk bonds (JNK) may provide a good shorting opportunity, if it breaks MA trend. Watch the U.S. dollar index as well as it is having some difficulty breaking key resistance.
Click on charts to enlarge and view commentary
___
Looking to invest in The Disciplined Investor Managed Growth Strategy?
Click below for the 14-minute virtual tour….
Disclosure: Horowitz & Company clients may hold positions of securities mentioned as of the date published.
