Last night I looked at an indicator calling for some short-term relief in the market and small caps still showing signs of traders shedding beta.
This morning I think it’s important to recognize the important levels of support and resistance we face. Yesterday’s close stopped right at the 38.2% Fibonacci retracement level between the June low and the July high. We also touched the 50-day moving average at 1332 and the rising trendline (blue line) from the late June dip. On the upside, we have the falling trendline that we broke through but could not maintain just a few days ago (green dotted line).
It appears all of these levels of support were enough to hold us….for now. I’ll be keeping a close watch here to see if this support can hold future re-tests.
