For Thursday August 17, 2017 3:00pm Pacific.
DOW - 274 on 1850 net declines
NASDAQ COMP - 123 on 1650 net declines
SHORT TERM TREND Bearish (change)
INTERMEDIATE TERM Bullish
STOCKS: Well, it had to happen sometime. We were stopped out of the SSO for a one point loss. This is the first loss of the year. Oh well, 10 and 1 should still get a bowl bid. More below in trading.
The market was hit by turmoil in Washington. There is concern that with there is now uncertainty about the agenda of tax cuts and infrastructure programs. The terrorist attack in Barcelona probably didn't help.
I believe that this is an overreaction. What are these Congressmen and Senators going to do? Go back to their districts and say, "Sorry we just couldn't get anything done please reelect us"?
Days like this in a bull market tend to have me looking for entry points on the long side. I am a bit wary because this is a weak seasonal period so we'll have to be extra careful in here.
I went bearish on the short term because a previous low was broken on the S&P 500 daily chart, but I doubt it will last long. This is still a bull market. Bear markets tend to only occur as a result of a recession and I don't see this at all.
GOLD: Gold was up $11 on the turmoil and a flight to safety.
CHART: I'm not liking the fact that the S&P 500 broke a previous low (top arrows) and it's not particularly good that we became oversold so quickly again after the last oversold condition (bottom arrows). But I have also seen a break of a support followed by a six month rally. The key will be breadth. The advance decline line has to straighten out. Stay tuned.
BOTTOM LINE: (Trading)