Equities Markets
Granted that the equities markets are being slammed. However, let us give the devil his due. A glance at both charts reveals the after the run up from March to June, the markets corrected. Then we witnessed anotherfairly sharp upmove from july to August. Are these markets not entitled to a respite? A downward reaction? Just how low will this reaction carry? There is no evidence that prices must test the uptrend lines but, one never knows. There are 3 levels to look at on the cash S&P: #1 the uptrend line. #2 and Gann line at 943 and #3, the broken black line representing the highs of last June. Now that is not a very bitter pill. I would still consider such a reaction as a buying opportunity.
We have all seen in the past that Wall Street has some pretty good firemen who can put out a fire quickly. This one is no exception
KbG