Helpful Pullback Price Planning Grid for NAS Dow and SP500
Fri, Aug 18, 2:21 PM ET, by Corey Rosenbloom
How far have the “Big Three” US Equity Indexex pulled back, what level tips them into a “Correction,” and what level throws us into a new Bear Market?
Here’s a new Reference Grid for you to determine the exact levels – as of right now.
What we’re seeing is the Dow Jones Industrial Average, S&P 500, and the NASDAQ.
Given that the current 52-week High holds, these are the future pullback levels to define “Correction” or “Bear Market.”
If this pullback is all we get and the market rallies back to new highs, then we just saw a (roughly) 2.5% pullback in the Dow and S&P 500 and a 4% pullback in the NASDAQ (based on the 52-week high and this morning’s spike-reversal low).
Here are your simple reference levels going forward.
For a CORRECTION, the Dow must reach 19,961; S&P 500 reach 2,242; and NAS at 6,396.
Though it seems incredibly far-fetched at the moment, to tip the indexes into a 20% pullback or “Bear Market,” levels include
17,743 in the Dow; 1,993 in the S&P 500; and 5,169 in the NASDAQ.
Bookmark and continue using this reference grid UNTIL we get a new 52-week high in an ongoing Bull Market… and then I’ll happily and bullishly update the grid!
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
SDI Glossary: "Equity" Definition
SDI Glossary: "Finance" Definition
SDI Glossary: "NASDAQ" Definition
SDI Glossary: "Stock" Definition
SDI Glossary: "Trend" Definition
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