Hope your weekend was a good one, because it doesn’t appear the
markets are in for a good week. At least that’s the way it’s looking so
far following Trump’s failed healthcare bill, which got the boot in the
final hours on Friday. Rather than losing the vote, they chose to not
even go to a vote, so we’re really not sure what to make of that from a
political perspective.
Regardless, there’s a few very simple takeaways from what took place
late Friday. First, the markets had been looking for a reason to move
lower for several weeks now, and they got it. It just took a while
that’s all. Second, Trump just got his first dose of what it’s like to
have to deal with our government, something that was clearly inevitable.
You can want all you want, even if you’re the President, but reality is
you’re likely not always going to get what you want, no matter who you
are.
The bottom line is we’ve got the markets opening lower this morning, which should also be no surprise since the NASDAQ Composite failed to close above that 5,851 level we pointed to on Friday. Now, it would appear these markets could be in for a nice little breather, one that actually would help the long-term landscape for equities.
Provided below is that same daily chart of the NASDAQ Composite we like to use, albeit updated. As you can see, we’ve included those same retracement levels we showed you last week, along with a few more. There’s a lot of lines here for sure. However, for all intents and purposes, we’re going to focus on one key level, which if the markets really start to break down on a short-term basis, should be achievable.
That level sits at roughly 5,600, which we pointed to last week. Not only is that a very key confluence area based on a few key pivot points dating back to the November bottom, it’s also a level that would bring the index back to a mean of sorts on its longer-term charts.
The bottom line is we’ve got the markets opening lower this morning, which should also be no surprise since the NASDAQ Composite failed to close above that 5,851 level we pointed to on Friday. Now, it would appear these markets could be in for a nice little breather, one that actually would help the long-term landscape for equities.
Provided below is that same daily chart of the NASDAQ Composite we like to use, albeit updated. As you can see, we’ve included those same retracement levels we showed you last week, along with a few more. There’s a lot of lines here for sure. However, for all intents and purposes, we’re going to focus on one key level, which if the markets really start to break down on a short-term basis, should be achievable.
That level sits at roughly 5,600, which we pointed to last week. Not only is that a very key confluence area based on a few key pivot points dating back to the November bottom, it’s also a level that would bring the index back to a mean of sorts on its longer-term charts.
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