Despite some volatility, Adam Sarhan says the bulls are still in control of the market. In today’s Find Leading Stocks newsletter, Adam identifies two key indicators of MARKET SUPPORT to watch. Subscribers have access to several charts and a list of strong leaders that rose above the volatility yesterday and remained UP on Volume, an indication that the individual stocks themselves are bullish. If you’re a subscriber, click here for the full report.
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What Does Adam Mean By MARKET SUPPORT?
Savvy traders recognize common thresholds for the performance of a stock. In the short term, stocks often show a pattern of rising between a FLOOR and and a CEILING, and as the price of a stock rises towards the CEILING or falls towards the FLOOR, market forces often intervene to reinforce that threshold. In general terms, as the stock reaches the CEILING some investors start selling; as it approaches the bottom, some start buying. The 50 DAY MOVING AVERAGE and the 200 DAY MOVING AVERAGE are also recognized thresholds that market forces often defend. If a stock moves above or below the threshold, the SUPPORT forces have failed and the stock may be ready to make some moves.
Adam wanted to share one chart with non-subscribers today in order to illustrate the market defending a threshold. Here’s SPDR S&P 500 that touched its 50 DAY MOVING AVERAGE, and market forces pushed it back up.
How do you make money off this information?
If it had broken through, depending on when you bought in, it could have been a sell signal.
As it is, it’s evidence the stock remains bullish, and it’s a good time to hold. Subscribers have access to much more curated information to inform their buying and selling decisions. Subscribe now.