There's DNA in certain levels of the market. That DNA is passed on from bull market to bear market. From crashes to booms. From panic to euphoria. The DNA for these events is carried forward in price and through levels that have consequences in the markets for decades.
The 2895 level for the S&P is one such level. It holds such magnificent consequence in its blood that how the market treats this level not just this week, but in the months ahead, will mean everything in terms of performance for the remainder of 2019.
It's not just one level of importance that lies in the 2900-3000 area, however, it is multiple. Therefore, the potential for chop is extreme. The potential for a top of some importance should also remain on the mind of investors.
Chasing performance and buying the dip was a viable strategy from January until May. Going forward, however, rallies should be treated with skepticism and dips should be treated with some measure of caution.
As it stands today, the high for the S&P was 2892. The weekly close is more important than the daily so watch how the markets react into the end of the week to what has been a pretty much spot on touch of this point this morning.
Zenolytics now offers Turning Points Premium service for unparalleled insight into critical junctures for stocks, indices and commodity issues. Click here for details.
Disclaimer
This website is for informational purposes only and does not constitute a complete description of our investment advisory services. No information contained on this website constitutes investment advice.
This website should not be considered a solicitation, offer or recommendation for the purchase or sale of any securities or other financial products and services discussed herein. Viewers of this website will not be considered clients of T11 Capital Management LLC just by virtue of access to this website.
T11 Capital Management LLC only conducts business in jurisdictions where licensed, registered, or where an applicable registration exemption or exclusion exists. Information contained herein is not intended for persons in any jurisdiction where such distribution or use would be contrary to the laws or regulations of that jurisdiction, or which would subject T11 Capital Management LLC to any unintended registration requirements. Visitors to this site should not construe any discussion or information contained herein as personalized advice from T11 Capital Management LLC. Visitors should discuss the personal applicability of the specific products, services, strategies, or issues posted herein with a professional advisor of his or her choosing.
Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding capital markets or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in, the transmission thereof to the user. With respect to information regarding financial performance, nothing on this website should be interpreted as a statement or implication that past results are an indication of future performance.
