This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fiscal Cliff Looms: 5 Must-See Charts

SPDR S&P 500 ETF

First up is a look at the broad market. The SPDR S&P 500 ETF (SPY) is an exchange-traded fund that tracks the performance of the S&P 500, our favorite proxy for Mr. Market. With the recent drop in the S&P (around 2.2% in the last two weeks), many investors are wondering if this is just the beginning of a bigger downside move. My short answer is no.

There's a lot of evidence that points to this recent drop in the S&P being a minor correction rather than a change in trend. While the selloff of the last couple of weeks feels a lot more potent than 2% and change, the fact is that, as far as corrections go, this one is pretty tepid. Looking at the zoomed in chart of SPY above, it's clear that this pullback isn't coming anywhere near trendline support for the index, and momentum shows this stock coming back to RSI support for a minor correction, not a major one. The fact that we're on our sixth down day in the last seven feels like a change in trend, but the magnitude just isn't there.

Instead, the SPY is testing support right around the $140 level. If support can hold up there, it looks likely that we'll see more buyers come out of hiding next week.
2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
SPY $210.96 0.78%
NU $0.00 0.00%
BRK.A $214,631.00 -0.21%
CL $69.10 1.00%
KMB $113.67 0.34%

Markets

Chart of I:DJI
DOW 17,771.50 +141.23 0.80%
S&P 500 2,106.73 +13.48 0.64%
NASDAQ 5,107.1140 +17.9080 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs