The Day After Tuesday

posted Dec 10, 2014, 10:28 AM by Katie Shook   [ updated Dec 10, 2014, 10:28 AM ]
Monday was down.  Then Tuesday was down… and back up.  But still down… compared with Monday.  And the internals of the indexes?  Up and Down.

Basically it was pretty messy.  But the takeaway is that the 2040 support area (consolidation around 2050) on the S&P500 appears to be holding.  Now it looks like a re-load to re-test the 2075 level again.  THEN do we finally see 2100?

I know there’s a lot of talk about China, Europe, Japan and the likelihood of more QE from Central Bankers or rate hikes domestically.  I think it’s a distraction from the ‘now.’  Now the rest of the world looks a lot more dangerous that US Equities.   And, even if the US markets are overvalued, they don’t yet appear waaaaay overvalued, which is what typically happens before a significant correction.

Make no mistake:  a correction will happen.  It’s when and how much that’s the stumper.  Until we hear otherwise though, I’d continue to stick with the theme that the SPX is hunting for 2100 and the Dow wants to be over 18,000 by year end.

ScreenHunter_05 Dec. 10 06.28

IMPORTANT DISCLOSURE INFORMATION Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Littlejohn Financial Services), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Littlejohn Financial Services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional adviser of his/her choosing. Littlejohn Financial Services is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Littlejohn Financial Services' current written disclosure statement discussing our advisory services and fees is available for review upon request.