Corrections are a part of the stock market, signaling moments of weakness and opportunity. Here's a breakdown of the current market decline levels, ranging from the recent 5% pullback to the potential 20% drop that defines a bear market. These are the levels that I will be watching to let me know the momentum of this current shorter term downtrend.
Historical...
NYSE:LLY moved from 761-799 this week, catching key support at that 761 level. NYSE:LLY closed as an outside week, bullish on the 15MIN-Week timeframe. This has the potential to be a really nice earnings run-up, if the 800 level can hold. As always do your own research, these are just ideas, not meant for investment advice.
Gave my levels on SPY on the 4HR on Wednesday if 586 couldn't hold. Jobs report came out on the strong side, gave a great flush to the downside in the morning. 580 target met, buyers stepped in and SPY bounced off of that level to the upside. Pretty easy play to end the week.
Today SPY did manage to fall below that 586 level that I mentioned yesterday, and filled that gap below. Buyers quickly stepped in and defended that level again. I'm bullish only if we continue to defend that range. Today was definitely a scalpers paradise, on the hour we ranged and chopped all day. Tomorrow markets are closed in remembrance of President Jimmy...
MMM has broken out on the 1hr chart over the last week. MMM has earnings coming up on Jan. 21. The stock is already up about $5 in the last week. If it breaks this flag, it still has room to the upside to the $137 area. Bullish at a break of this flag.
SPY has had multiple rejections on the $600 level. These are the levels that I will be watching for tomorrow. Support at 586 is crucial, or we will fill that gap down towards the 581 level. #keepitsimple
