Another short write-up for the Stock Market Outlook for Fri Dec 28 2018.
A huge come-back rally on Thursday caught most analysts and investors by surprise as the indexes all recovered from substantial losses, to close positive on the day.
There will continue to be selling on Friday and a deeper than expected dip could happen, but overall those deep dips will be bought into by investors.
The overall outlook is for the markets to push still higher on Friday and keep the Santa Claus rally alive. A very choppy day is expected for Friday.
The rally is not a signal that the bottom has been put in. If anything, the wild gyrations look more like a bear market than a bull market.
Staying cautious is important for capital survival on Friday.
Support Resistance Levels To Be Aware Of:
2700 is resistance
2675 is light resistance
2650 is light resistance
2620 is light resistance
2600 is strong resistance.
2550 is resistance.
2480 is resistance.
2450 is resistance.
2525 is resistance.
2400 was support and may still be.
2380 was support and may still be. A rally could reach the level.
2350 to 2300 is the best support and marks a full correction.
A break and a couple of closes below 2300 would signal an end to the bull market from 2009.
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