Transcript
Hello, everybody, welcome to Thursday. Well, yesterday, I finally got to wear my green shirt. And unfortunately, today I have to wear the red one, the S&P500 was down a little over 3.4%. Today, actually, these types of days, I think it’d be quite instructional, there’s a lot of things we can find out about the market. But one of the things that happened today is a little bit of what I talked about a couple days ago, we had essentially eight days in a row where we were hitting an all time highs almost every day. And what happens is, when you do that you have no support, so didn’t spend much time at that price. It’s never been at that price before.
And so oftentimes, you’ll get this pullback down to the support level, to kind of fill in those prices. And sometimes you’ll see churning, and that’s exactly what happened today, it fell right down to the support level that was established. Prior to that eight days, and it held and Matter of fact, at the very end of the day, it actually rallied up a little bit. So hopefully that means something for tomorrow.
So when I see a big down day, and most of the down days are bigger than the up days, I mean, you know, most charts kind of go up slowly and down fast. And that’s because greed is not as strong an emotion as fear. But when I see these, I basically want to be able to tell at some point in time, whether this is just a down day in the middle of an up market, or is this a reversal of trend, and we’re now going to have a downtrend. And so at the moment, after this one day, we can’t tell the 20-day moving average is still up the 50-day moving average is still up the 200-day moving average is still up and the price is above all of them. That is still a up market. Matter of fact, that’s a very strong market. And as those things start to break down, I’ll talk about those and what we might want to do if we don’t get a bounce from here.
But I’m pretty optimistic that there isn’t any place else for the money to go. We talked about that several times, too. With interest rates being so low, I do think it’ll eventually come back in here. I’m not surprised to see this pullback. I was talking about this possibility just because again, we took back eight days of run and back and we’re back down. And so I think there’s probably going to be some buying opportunities that come up here and there’ll be some people that use this as a chance to get in. So we’ll see. Let’s see, tomorrow should be really interesting to see what happens and see if we get some bounce back or if it continues down or whatnot. So I look forward to talking to you tomorrow. Thank you.