This past week saw another continued wave of selling over all of the major market indices. Even gold, that time tested commodity, could not help but to end the week lower.
The above graph shows Dow support at around 9600. Any breach below this level means we will then test the March 2009 lows. Resistance is around 11900. Of course, many of the indicators show we are approaching over sold levels. These are technical market indicators which means almost anything can still happen. There is still alot of fear in the marketplace with respect to jobs, the economy, nationalization of our health care system, natural disasters, man-made disasters. Markets typically do not crash in summer months NOR when there is so much fear to go around. The sellers typically exhaust themselves over a period of time and the market rebounds.
We have been saying for months now is the time to pick up those companies which you didn't want to chase last year.
Note: The above is for information purposes only. Any decision to buy, sell or hold a specific investment should be reviewed by your own portfolio manager.
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