I don't need to talk about the obvious. This has been a severe correction based on how fast the drop has occurred. My idea a day ago highlighted the fact that NO ONE should be entering the equity market on the long side until a break above 3225. This deemed to be correct.
At this point with seemingly no good news insight, the next stop (with hopefully bounces along the way?) could be into the 2750-2800 level. If the Fed cuts rates in March, which will probably happen out of panic, this may or may not have a positive impact on the market. 1) It may provide support to lofty valuations and the markets could have a relief rally - or - 2) the markets may view this as a sign of panic and continue to sell off. What it will do though is devalue the DXY and be bullish for Gold and Silver.
Don't try to be a hero or you may tank your account to a zero. Wait for the 3225 as I suggested (if that happens) before entering any longs.
- zSplit
At this point with seemingly no good news insight, the next stop (with hopefully bounces along the way?) could be into the 2750-2800 level. If the Fed cuts rates in March, which will probably happen out of panic, this may or may not have a positive impact on the market. 1) It may provide support to lofty valuations and the markets could have a relief rally - or - 2) the markets may view this as a sign of panic and continue to sell off. What it will do though is devalue the DXY and be bullish for Gold and Silver.
Don't try to be a hero or you may tank your account to a zero. Wait for the 3225 as I suggested (if that happens) before entering any longs.
- zSplit
