The Media continues to frighten the public and investors hence the market trading up and down 1000 points. It even went so low on Monday (03-09-2020) that the market had to stop trading for 15 minutes.
Of course, the media is enjoying this and reaping the advertising dollars while scaring the pants off everyone daily. They attributed the dramatic downturn on Monday to failed negotiations on oil production levels between the OPEC (the Saudis) and Russia over the weekend. This in turn caused the price of oil to plummet over 20% (to the low $30s).
Because of all this extemporaneous news and media hype, it is most difficult to find any market sector that is immune to this current downward bias and is even more difficult to discern viable support levels in the market.
Currently, the market indices are within a spitting distance of “Bear” market levels and could possibly go to some lower “support” levels before finding a sustainable bottom and then begin moving higher once again. Of note, (2) indices are “actually” in “Bear” market levels at this time, the Russell 2000 (small caps) and the Dow Transportation Index which is obviously attributed to the current plight of the airline and cruise line industries.
Our current “technical's” for the indices indicate the 2600’ish level on the S&P 500 and the 7500’ish level on the NASDAQ which could offer some major support that may allow the market to begin moving higher. The S&P 500 level roughly translates for the Dow Jones to the 22500’ish level.
As always, we will keep you posted on what we are seeing in the market (without any “hype”).