Where To Buy The Dip?
As you know I've been warning readers to wait on opening new bullish positions. The market was struggling under resistance and now it's begun to correct lower. We were watching the 1,050 level on the S&P 500. This should have been significant support underpinned by its 50-dma and the trendline from the March lows. The index sliced right through it. The next level of potential support is probably the 1,000 level and its 100-dma. If that breaks then we're probably looking at a dip toward the 950 level.
So where would you rather enter new bullish positions: at the 1,000 level or the 950 level? A normal 38.2% Fibonacci retracement of the March-October rally would be near 937. I am suggesting investors use patience and wait for the market to present the right entry point.
No new plays tonight.