Near Term Trend: Positive to Neutral
Friday’s Close: 2139.16 (- 8.10)
UPDATE: We certainly thought the Index would not trade above 2215.00, for several weeks stated, the market looked tired. Subsequently 2194.20 was the highest the Index traded.
Volatility has picked up post summer, and the Index had its largest single day drop since the third week of June, prior to this past week. October is traditionally a month the Equity markets retrace, and maybe this is a preamble to that on the horizon.
Our theme in our last report six days ago was as follows. “Old resistance at 2121.00 may act as new support (see chart), but I doubt it will”.
Thus far support at 2121.00 (keep in mind this is my proprietary support / resistance line which has been in place for five months), held this past week as the Index touched the line four out of the last five days.