Psychological Support - DJIA Afternoon Update 12-10-2018
24,000 Has Continued to Provide Psychological Support for the Market
Afternoon Rebound
The DJIA has rebounded off today's low (at least thus far) of 23,881.37 to over 24,100. The 24,000 has continued to provide psychological support to the market. The market has been bracketed within a range between 23,808 and 24,320 though there is nothing keeping the market from trading outside that same range.
Running out of Sellers for Now?
The opinions about the market - given events ranging from a US-China trade war plus heightening military tensions, to a Parliamentary vote delay on BREXIT vote, have soured the mood of stock markets in the US.
At some point fear will be overcome by greed and sellers relative to buyers of stocks will halt the ongoing slide of the DJIA. After losing ground on the 4th, 6th and 7th of December - falling from 25,826.43 to 24,388.95 - and pessimism will be wrung out of the market in favor of - if not optimism - some kind of hope that losses will not continue to pile up.
Somebody Has to be Wrong
The stock market works on the basis that somebody has to be wrong and somebody has to be right. It is something so obvious that is more often than not goes without saying. However, it is good to consider that not only does somebody have to be wrong, but that quite often most people will be wrong and this is a significant factor in moving markets.
Some Levels to Watch for Remainder of Today
As stated earlier, the market has been bracketed within a range from 23,808 to 24,320 today. Above that watch 24,576 which is the line between the 7th and 8th levels of this market of 9 overall. Whether or not the market falls within the 23,808 to 24,320 today, or above it, could help indicate the strength or weakness of the current market. Finishing above that range would indicate at least a slight - if temporary - strengthening.
Can the Market Get Some Lift?