Technical Analysis

Has the Market Recharged Yet?

Stock quotes in this article:IWM, XLF, XME 

Expanding the table from the June 11 article, a summary of the current situation and key support levels I am watching is provided below.

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Support Levels

While the Nasdaq is still over 5% above the first support level I have identified, IWM is much closer and the S&P 500 is right on the verge of violating support. The next few days are indeed crunch time for the markets, especially the S&P 500.

If support levels are broken, I will increase short positions. If support is held, I will be closing the positions in SKF and DUG, probably using close stop-loss orders -- 5% from the most recent high for SKF and a little looser for DUG at about 8%).

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At the time of publication, Lounsbury was long DUG and SKF.

John B. Lounsbury is a financial planner and investment adviser, providing comprehensive financial planning and investment advisory services to a select group of families on a fee-only basis. He worked for 34 years with IBM, and spent 25 years in R&D management and corporate staff positions. He also was a Series 6, 7, 63 licensed representative with a major insurance company brokerage for nine years.

Specific interests include political and economic history and investment strategy analysis. He holds degrees from the University of Vermont, Columbia University and the Illinois Institute of Technology, where he studied chemistry, physics and mathematics. He is a contributor to Seeking Alpha and his own blog, PiedmontHudson.

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