As almost has become a habit at the beginning of a new week, the market took another hit to the downside yesterday.
While the damage was only around 1% for the major averages, many technicians will be now slobbering over the closing numbers as the support level of 680 on the S&P; 500 was taken out.
I reported in “Looking for support,” that once the 680 level is broken to the downside, the next support will be at 600, which translates to another 11% drop from yesterday’s close. Ouch; that’s really going to hurt, for those who are still desperately holding on to bullish investments.
Economist Nouriel Roubini had this to say in a recent interview:
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Comments 2
Ulli,
Where are all these analysts coming from anyway, they make all these wild predictions of support and resistance levels first they say that if the market breaks here it probably will go here or there etc. and they just keep revising as the market moves either way so what good do they do anybody? A person would soon go broke listening to these people and just think they actually get paid for all this nonsense.
Especially in the financial world, everyone needs to justify their job… 🙂
Ulli…