This post was originally issued to TLS Members on October 30, 2018 (fyi, the S&P 500 would eventually top out at 2813.)
This is a follow up to last Friday’s Crash Alert (or, Crash Avert) post. Markets are off to a solid bounce off of the aforementioned levels. In the event that THE initial low is in, please refer to the following resistance, i.e., profit-taking, levels on these respective indices. We would not hesitate to take some profits at said levels as the bounce is likely to be merely a retracement bounce prior to an eventual re-test of the lows. Remember, these resistance levels are fluid during a decline, especially after new lows are recorded. Therefore, levels on many indices have changed since yesterday’s WMMR weekly report. Should this bounce continue without another new low, these levels should continue to be valid. However, be sure to follow the DSS videos each morning for new updates or developments.
- Value Line Geometric Composite: 530, 542, 552, 562 (for reference – no tradeable equivalent)
- S&P 500: 2684, 2733, 2772, 2812 (SPY is ETF equivalent)
- Dow Jones Industrial Average: 24,800, 25,200, 25,550, 25,875 (DIA is ETF equivalent)
- Nasdaq 100: 6845, 7009, 7140, 7272 (QQQ is ETF equivalent)
- Russell 2000: 1525, 1567, 1601, 1634 (IWM is ETF equivalent)
- S&P 400 Mid-Cap: 1838, 1879, 1913, 1947 (MDY is ETF equivalent)
Disclaimer: JLFMI’s actual investment decisions are based on our proprietary models. The conclusions based on the study in this letter may or may not be consistent with JLFMI’s actual investment posture at any given time. Additionally, the commentary provided here is for informational purposes only and should not be taken as a recommendation to invest in any specific securities or according to any specific methodologies. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.