Stock Market Outlook for Feb 9 2018 – Bounce Likely Buy Still Lower

For Friday Feb 9 there is stock market summary.

Closing Statistics for Fri Feb 9 2018

S&P 500 Index Close

The S&P index ended down 100.66 to 2581.00

Dow Jones Index Close

The Dow Jones ended down 1032.89 to 23,860.46

NASDAQ Index Close

The NASDAQ closed down 274.82 to 6777.16

Stock Market Outlook

Support Levels To Be Aware Of:

2675 and 2620 were light support.

There is good support at the 2550 level.

The S&P has light support at 2480. It also has light support at 2450 and good support at 2425. Below that there is some support at 2400, 2380, 2350. 2300 has the most support at present but would represent a full correction as a drop to this level would be almost 15%.

 Stock Market Outlook for Tomorrow – Fri Feb 9 2018

Quite a bit of the evening was spent working privately, with a number of members on some trade repair methods. That cut into the amount of time available for full analysis.

The close on Thursday was a lower low for the S&P so the chance that this correction saw a climax on Thursday I think is very small. The S&P, like all the major indexes, close at the lows and did not try to rebound. Usually this points to Friday as opening with a slightly bounce and then more selling.

At present the correction has been strong and usually this type of correction does not form a V type bottom. Instead it will take weeks of market gyrations to begin to rebuild confidence and a bottom of sorts. On Friday I would expect a bounce attempt but there is a good chance the S&P will fall to 2550 and test support at that level. This is important for as you can see in the section, Support Levels To Be Aware Of, 2550 is good support and a break of it will mean a much deeper correction which could be 15% or 18% in nature. Stay cautious and continue to trade only small positions to keep most cash ready for a recovery at some point but not yet.

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