Stocks: Time For A Bounce?

The battle has now been joined for the stock market.  After what has been a sharp correction since January 22, stocks as measured by the S&P 500 Index have finally arrived at their first major support level in the 100-day moving average.  This support has proven reliable for a bounce on three different occasions since last June.  And the technical set up looks very similar to these past episodes from a relative strength and momentum stand point.  While fundamentals are in favor of a further correction, the market has been determined to continue to push higher when confronted with such challenges in the past.  How stocks respond over the next few trading days will be critical in determining whether we see another bounce from here.  If not, the next major support level is the 200-day moving average, which is currently at 1707 and rising on the S&P 500.  Stay tuned.


Disclosure: This post is for information purposes only. There are risks involved with investing including loss of principal. Gerring Capital Partners makes no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made. There is no guarantee that the goals of the strategies discussed by Gerring Capital Partners will be met.





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