The rebound on Friday wasn't enough to repair the technical damage that occurred in the market last week. While the S&P 500 ETF 'SPY' remained more resilient, both small caps and mid caps finished the week at their lows. Given weakness in almost all areas of the market that I've been looking at, developed markets, emerging markets, bonds, and mid and long duration treasuries, I believe that the weight of the evidence leans more towards a market that is going to continue going down rather than up.
SPY
Point and Figure chart analysis shows the market is at a critical juncture. Further weakness will take out the support of the most previous rally, while not far below that is the support levels from earlier in the year. Should that level break, and personally I feel that it will, significant support doesn't appear until around $205. I'm defining significant support as the region last showing heavy trade activity.
Good luck trading!
SPY
Point and Figure chart analysis shows the market is at a critical juncture. Further weakness will take out the support of the most previous rally, while not far below that is the support levels from earlier in the year. Should that level break, and personally I feel that it will, significant support doesn't appear until around $205. I'm defining significant support as the region last showing heavy trade activity.
Good luck trading!