Be Ready: If This Level Breaks, Dow Drops Another 500-1000 Point
The S&P 500 saw early upside today as biotechnology and Apple Inc. shot higher. However, by mid-morning the $IBB (biotechnology ETF) began to reverse and oil collapsed. This left Apple as the only big factor to a stock market that was green. Apple has started to fall off its highs and the stock market is now negative. Uh oh....
As a smart investor, watch the trend line in the stock chart below. If the $SPY breaks this support, the Dow Jones Industrial Average will collapse along with the rest of the market. Charts signal that a break below this level will trigger another 500-1000 point decline in the Dow. In other words, the lows from the last few days is major support and if broken, go into hiding unless you are short or in cash.
Jenny,
Verified Trader @ VerifiedInvesting.com
As a smart investor, watch the trend line in the stock chart below. If the $SPY breaks this support, the Dow Jones Industrial Average will collapse along with the rest of the market. Charts signal that a break below this level will trigger another 500-1000 point decline in the Dow. In other words, the lows from the last few days is major support and if broken, go into hiding unless you are short or in cash.
Jenny,
Verified Trader @ VerifiedInvesting.com