The major indexes experienced record falls in comparison to a period of almost twoyears. The DJ-30 fell nearly 513 points, equivalent to 4.31%, closing at 11,383.68points. The SP-500 in 4.78%, closing at 1,200.07 points. Finally, the Nasdaq Comp. fell 5.08% to close at 2,556.39 points.
These falls broken important support levels on all major indices, leading to the consolidation of a downward trend in the market. Additionally, an aspect that is important is that this process experienced yesterday, the price of gold also fell significantly. I stress this, because when the market trend changes primary market prices considered safe (eg gold), also experienced declines. While it is too early to say conclusively that gold could also be routed to a reversal, the behavior of yesterday the yellow metal seems to indicate that is heading for a major correction.
What can we expect next?
Obviously, investors are waiting for the jobs report that presented this morning. If this report is good, the market can find a place to grip, even in the short term. But if this report provides us with negative information, then the market will have a new reason to keep growing.
But despite this factor, I think it's important to note that the market is oversold right now ... but now this oversold condition is only in the short term. Any rise in the market, could be a good opportunity to find good candidates for short sales.
Please click on the chart to enlarge
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