The Rational Mind

DISCLAIMER This briefing is for informational and entertainment purposes only and does not constitute financial or investment advice. Always consult with a qualified financial professional before making any investment decisions. THE SHORT-TERM VIEW The market, in its immediate gyrations, appears to be grappling with a distinct downward bias. The S&P 500, having closed at 4460, has slipped below its 50-day moving average, a common technical signal that rarely portends sunshine and rainbows. Momentum indicators like the MACD have flashed a bearish cross, and the RSI is trending down, all while trading volume has conveniently swelled on days the market took a tumble. Traders are advised to eye 4400 and then 4350 as crucial support levels, with 4500 and 4550 acting as overhead resistance, should the bulls ever decide to show up. The Nasdaq, for its part, closed at 15300 and, while displaying "more relative strength" than its broad-market cousin, remains tethered to the broade...