We had a rather bearish drop of 3% yesterday. Since im on a half day leave today I decide to take a look at the long term charts.
What I don’t like about it is that on the MACD it shows a clear sign that it is Failing the zero line and it went from cutting up to springing down.
MACD does give a very delayed signal and what I feel is that from past movements like this, when the indicators have reached such an extend, the selling is almost over. Still we have one instance in 2008 where a test of the zero line and a failure brings about a drastic downward move.
The area of 1046 on the S&p 500 is important since we have 2 major change in directions there. That couple with that it is near the 50% retracements from the 2007 bull market highs indicate that this is an area that we need to watch for support and resistance.
Next support I will watch for is around the 970 region.
Actions
For my dividend stocks, this long term indication seems to suggest more downsides. But for all you know the movement these days might very well be noise.
I will be watching the market movements these days. If need be I will pare down the holdings in these stocks.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
- My Dividend Experience Investing in UCITS iShares iBond Maturing in 2028. - April 23, 2024
- We Invest into Popular Funds When They Are Popular, Exactly When They Started Turning to Shxt. - April 22, 2024
- Meal Prep 2.0 – Cooking Your “Go-to” Meal that You Look Forward to Eating Everyday. - April 21, 2024