By Gareth Soloway on April 19th, 2010 12:08pm Eastern Time
The markets have just slammed into a technical support level at a double bottom from Friday. While this generally is a strong support area, it may not hold. As a Chief Market Strategist, I am seeing a change in technical price action in the markets today. While over the last two months, middle of the day, light volume has floated the market up, today, it is taking it down. In addition, there is continued worry over financial regulation in the wake of Goldman Sachs Group, Inc. (NYSE:GS) being charged with civil fraud. Global economic worries are focused on Europe from the lack of travel because of the Icelandic volcanic eruption.
The SPDR S&P 500 ETF (NYSE:SPY) hammered into the double bottom from Friday. This level may hold in the short term but is unlikely to hold in the long run because of the key factors mentioned above. It is looking like this market has a chance of confirming a pivot top. Keep your eyes on this market, with oil dropping, financials dropping and even stocks like Apple Inc. (NASDAQ:AAPL) falling, the market is on the verge of a possible short term correction.
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Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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