Published on July 28, 2017 @ 8:15am
A big reversal yesterday was somewhat saved by day's end. Although the plunge protection team showed up to bring back the major indices on the day, it was a little concerning considering we achieved our near-term first line target on the NASDAQ Composite of roughly 6,445.
Additionally, even though the S&P 500 still hasn't achieved our 2,500 target level yet, it's more about the increase in volatility yesterday as the markets hover around critical levels once again.
With Alphabet (GOOGL) having beat and then selling off, and then again with Amazon (AMZN) doing the same today - albeit a mixed bag of earnings results from the Company yesterday - it's probably prudent at this time for traders to take profits in many quality names. That's assuming you're not a multi-year buy and hold investor of course, because there's never anything wrong with staying the course if your strategy is based on investing in good companies for several years.
It's far too soon to tell at this point, but if the NASDAQ Composite can't find its footing, an ultimate move to 5,920 is possible.
The markets are clearly in flux yet again now with yesterday's sharp reversal across the major indices, so we'll see if we get downside follow through over the next several days.