Markets Approaching Key Support

January 4, 2008 at 12:45 pm  ·  Category: Market Commentary, Technical Analysis

The selloff is accelerating here in the afternoon and we are rapidly approaching key support levels that need to hold if the bull market is intact.

Here is where indexes are now and where key support is (in my opinion):

Dow: 12807, key support at 12700

S&P: 1414, key support at 1400

Nasdaq: 2508, key support at 2450

As you can see, we are only about 1% from key support levels on the Dow and S&P and 2% on the Nasdaq

I’d expect these levels to hold today.  And we could even see a bounce off of them in the short term.  But those are the levels to watch, in my opinion, over the next few weeks.  Any sustained break below these levels would be confirmation for me of a bear market.

Posted by Greg Feirman  ·  Trackback URL  ·  Link