market folly

Given that the market has seen a large sell-off in recent days, we thought it would be prudent to take a technical look at the S&P 500. Adam over at MarketClub has posted a new video on the S&P 500 where he takes a look at whether or not the market is heading lower. Drawing the fibonacci retracement from the market highs to the market lows, he notes that the 50% retracement level is typically very important and serves as a resistance point. He also points out that they received a signal to exit their longs at S&P 1,114 as the market hovers around 'thin air' in the retracement zone. Click the chart to watch the video:




For now, Adam feels it's best to be out of the market as the sell-off has been sizable and he is anticipating more defensive action. However, he lastly notes that their monthly signals still show that the trend is up while their timing signals show to be out of the market for now. Check out his thoughts on the S&P 500.