Ignoring Support

As almost has become a habit at the beginning of a new week, the market took another hit to the downside yesterday.

While the damage was only around 1% for the major averages, many technicians will be now slobbering over the closing numbers as the support level of 680 on the S&P; 500 was taken out.

I reported in “Looking for support,” that once the 680 level is broken to the downside, the next support will be at 600, which translates to another 11% drop from yesterday’s close. Ouch; that’s really going to hurt, for those who are still desperately holding on to bullish investments.

Economist Nouriel Roubini had this to say in a recent interview:

About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
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