Under 30k is considered by some market watchers as a psychological tripping point for investors (at least those short term investors), meaning when it does look out below!
Under 30k is considered by some market watchers as a psychological tripping point for investors (at least those short term investors), meaning when it does look out below!
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I think that’s right. There are lots of folks out there who set 30,000 as the benchmark which if it slides that far, they are parking their money. That is why the trendline looks like it has an increasingly steeper negative slope to it. At that point, all bets are off when the herd stampedes for the gate at the same time.
If you look at the three major indices they are all approaching breakdown levels from the covid panic. The Dow reached about 30k, s&p about 3,400,and Nasdaq around 10,000 before uptrend stop and covid panic meltdown. After the shakeout all three indices blasted past these levels and continued to rally to new highs into the start of the Biden presidency. While I do expect to see a mini rally off these levels; don’t think it will be sustainable and ultimately the support will be broken to the downside. Too much ugliness out there. Thank you Paine Webber, I mean President Biden.