Flash – Rundown or Strategic Review of our Model Price Equity Indices Charts


After another down day in the markets, let’s have a look at our model price charts of the three major North American equity indices that maybe of interest.

 

In no particular order,

 

S&P/TSX Composite Index

 

S&P/TSX Composite Index with weekly price bars and EBV Lines (colored lines).

S&P/TSX Composite Index with weekly price bars and EBV Lines (colored lines).

 

No correction here.  At least not yet!

If things do get hairy south of the border, then look for downside support at EBV+2 or 13,906.  That’s only 2.6% below tonight’s close.  No big deal, right?

 

S&P 500 Index

 

S&P 500 Index with weekly price bars and EBV Lines (colored lines).

S&P 500 Index with weekly price bars and EBV Lines (colored lines).

 

I can hardly see any correction on this price chart, can you?  Support for this Index is back to EBV+3 or 1716.  That’s only 7% from tonight’s market close, which doesn’t sound like much but I’m sure this will shake investors’ confidence if this Index did reach support in the immediate future – leaving buyers with a great buying opportunity.  Keep in mind the closer this Index gets to EBV+3 the less risk investors will be taking in the US market in general.

 

NASDAQ 100 Stock Index (NDX)

 

NASDAQ 100 Stock Index (NDX) with weekly price bars and EBV Lines (colored lines).

NASDAQ 100 Stock Index (NDX) with weekly price bars and EBV Lines (colored lines).

 

I guess I don’t need to tell anyone that the NASDAQ stocks have been the ones that have corrected the most.  The good news, as of tonight this Index has a downside risk of only less than a percentage point before touching support at EBV+5.  Look for the NASDAQ Index to start looking for support, or better still individual NASDAQ stocks to start holding their ground in the next few days at their own support levels or the bottom of their current EBV zones.

 

Big rallies have and do occur when Index EBV support levels are reached when individual stock declines become tapered.  Buyers do become emboldened when they think the sellers have abated for whatever reason.

 

Hopefully this will give you some guidance on where we are at with this market and plan your investment or trading plans accordingly.

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