Our research shows the broader markets will now attempt to hold 200 day support on the DJIA and S&P 500. As we predicted in last weeks broader market update, the broader markets paused (similarly to this time last year in early August 2013) breaking down below their 50 day moving averages resting just above and not far off 200 day support. Our research shows we should see and expect further weakness in the DJIA with a possible break below 16,400 to as low as 16200 before we see a powerful snapback rally which could bring us quickly back to or retest previous highs later this month and into early September. We view this consolidation as a great buying opportunity and will alert and position ourselves in primarily high quality DJIA, S&P 500, and NASDAQ 100 stocks as well as over 30 ETF’s this coming week. The russell 2000 small cap index has been extremely weak as of late but should participate to a lesser degree in the upcoming snap back rally. We will look to hold these positions over the short term and then look to sell once we are close to or revisit previous record highs. Our research shows 18,200 + by year end.
This will be a very busy week filled with newsletter and chat room alerts. Make sure you check your email and mobile devices for our most recent newsletter reversal alerts pre-market every day this week starting tomorrow morning Monday August 4th.
Have a great week.