There comes a time when things get tough to turn to the Keep It Simple Stupid (KISS) approach and this is one of those occasions. You will recall my earlier yardsticks when the market was headed up that I mentioned things always get difficult around round numbers. On that occasion the hiccup occurred at 16,000, 4000, and 1800 on the DJIA, NASDAQ and S&P 500, respectively. Now many moons later since those numbers were finally breached to the upside, we are once again sitting just above them as the support levels before the Market Indexes finally give up the ghost to the downside:
Here is the Current Status:
…And here using the -4% Benchmarks I always use to gauge the potential Targets is the NASDAQ:
Now you have it… the Rationale being that at these ROUND NUMBERS there is now plenty of Support and with all the shenanagins of the Big Guns they either mean business to hold the line at these levels or World News is too difficult to overcome. If the Market Indexes stay above these round numbers, then play till the cows come home, if you can put up with the Turmoil. Lesson learned…When in doubt, Keep it Pithy!