A string of bad news has the stock market off kilter but buyers are coming in here on a test of the October lows.
Will this turn into a “buy” the event trading pattern on a test or undercut of those lows?
In the video below, we highlight key trading levels and thoughts on the S&P 500 and Nasdaq.
As a reminder, selling can drag on for days, while bounces in bearish markets are fast and fierce. For a bounce to develop, we need to see higher lows (and those higher lows hold!).
The motion intermediate-term is bearish and bounces should still lead to more selling. A sharp bounce could come into play if bears get complacent and are caught flat-footed again.
Watch your trading edges here and use caution. Traders are in limbo here, waiting to see if Santa shows up this year…
Stock Market Futures Video Update – December 10, 2018
The author trades stock market futures every day and may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.