S&P 1085 and 1035 are Levels to Watch
You are going to hear this more than once in tonight's newsletter. We've been waiting and predicting a correction in January and now it looks like the correction has finally appeared. Readers shouldn't be alarmed. Corrections are normal although this one has gotten off to a speedy start. We want stocks to pull back so we can enter new long-term positions. The challenge now remains the same as it has been - patience. At least now we can start plotting where we might find potential entry points.
The 1085 level on the S&P 500 might offer some support. I am suggesting readers focus on the 1050-1035 region. This would be a 10% pull back in the S&P 500. It is probably not going to happen all at once. It could take a few weeks to finally get there in spite of the sudden drop. At least that would be normal. The political rhetoric lately could cause stocks to accelerate lower.
Keep an eye on the Watch List for potential candidates.