Well we are seeing continued decline!

As I flagged in my previous post on the 21st January here

“We essentially have 5 scenarios

1. Today’s negative action halts today and builds a base at the intermediate support line
2. We experience further downside action to the medium term support line at 1072
3. We pullback to 38.2% of the July Trend (6 months)
4. Pull Back to Fibonacci 50, at 1015
5. Experience quite a serious correction releasing the tension of the March to date rally with a pull back to 980.

It has been a great rally since March but something inside me has to begun to be extremely skeptical.  Do not get caught the wrong side of a power sell off without a stop loss in place.  Do not risk any more than 5 to 10% max on any one trade.  Never make one trade worth your entire portfolio. I believe options 2 and 3 are the most likely to occur, but potentially 4 is a possibility.”

Well Scenario 2 seems to be the target for now, the S&P500 has plummeted  through support at 1119 and will come close to my 2nd specified downside target of 1072 over today and tomorrow.  The next stop after that could be 1045.  The market is not reacting well to any good news and that is a signal in itself.   Be careful with your money, do not get dragged down betting against the odds your stock will rise in a falling market.

See Downside Targets Chart.

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