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

[video] Quick Take: Stock Selling Isn't Expected to Last

NEW YORK (TheStreet) -- All three major U.S. indices are lower on Monday, with the Nasdaq leading the way. So is this the correction investors have been awaiting? 

Mark Newton, chief market technician for Greywolf Equities, told TheStreet's Debra Borchardt that for now the current market pullback seems to only be short term. The broader trends are still intact and the indices are likely to bounce back in the next several weeks, which would represent a good buying opportunity. 

Specifically, Newton suggested investors watch the 1,755 level in the S&P 500 for support, which are near the lows made in December.

Technology and financial stocks have reported relatively strong earnings reports, which is good news for the bulls, especially as valuation concerns come into the picture. 

Newton pointed out that fear has quickly escalated, evident by the 50% move higher in the CBOE Volatility Index (VIX.X) in the past week. 

Newton concluded that a rally into March or April seems logical, with equities underperforming in the May through September period.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $128.70 0.00%
FB $78.81 0.00%
GOOG $540.78 0.00%
TSLA $230.51 0.00%
YHOO $42.04 0.00%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs