Broader market update for the week of 10/20/2014 – 10/24/2014.
Our research shows the remainder of the month of October should continue be volatile but with a bias to the upside. Last week our previously forecasted short term tradable bottom held between 15800 and 15950 for the DJIA. Now we need to see a follow thorough to the 200 day moving average this week. The 200 day sits between 16585 and 16625. This 200 which was previously support when we were above it, is now overhead resistance. We don’t expect to move right through it without a fight so we should pause and pullback from those levels. By a pullback I mean no lower than 16150 to 16200. From there we’ll need to bounce and recover quickly and move back up and through the 200 day at 16600. Then continue up to around 17000 or higher. So based on the detailed forecast of our research the broader markets will need to function in a very structured and measured way. If they don’t and the markets refuse to hold or break down at any of these levels a possible move back down to 15850 or even lower might materialize. A break below 15850 isn’t likely now with only two weeks left in October but of course is always a possibility.
I’ll briefly give you the important numbers for the S&P 500. The next upside resistance area of the S&P 500 is 1925-1935. Once the broader markets are at their respective 200 day moving averages we’ll provide another broader market update.
So recapping these support and resistance levels I just reported need to be fulfilled in the order I described. If anything goes askew our research will alert it and we’ll report any changes to you immediately.
Check your email for our latest newsletter stock picks. Make sure when you’re reviewing our picks you always check earnings dates…we typically avoid all earnings reports unless otherwise noted. We’ve added some additional times to this weeks picks due to the correction and broader market weakness. Tax selling season is almost upon us so most stocks in the broader markets that haven’t performed well since mid year may continue to move lower until the end of the year which should set up a great January Effect.
In late December we’ll be done researching stocks for our January Effect list. As a bonus you’ll receive our February Effect list too. Yes that’s two lists not one. This second list sets you up for the beginning of February through March which is the end of the first quarter. The February list has just as much potential if not more than the January list. Check the front page of our website for more details at the end of this coming week. We’ll have last years results posted for your review. We think this coming January Effect list will be the best one we’ve seen in over 10 years. So make sure you sign up and take advantage of this great offer. If you sign up with a credit card by December 1st, you’ll get one additional month free. That’s two free months no obligation to check us out. This way you’ll be able to judge us and see how we do and much money you can make with our January Effect list before spending one dime. We are confident that after you experience and find out how well you can do in the first quarter of 2015 by following our early strategy, you’ll want to stay with us for the rest of the year and hopefully beyond.
So thanks again for being here and have a great week.