Where is the leadership?
Gary Kaltbaum is an investment advisor
with over 18 years experience, and a Fox News Channel Business Contributor. Gary
is the author of
The Investors Edge. Mr. Kaltbaum is
also the host of the nationally syndicated radio show “Investors Edge” on over
50 radio stations. Gary is also editor and publisher of “Gary Kaltbaum’s
Trendwatch”…a weekly and monthly technical analysis research report for the
institutional investor. If you would like a free trial to Gary’s Daily Market
Alerts
click here. 888-484-8220 ext. 1.Â
The best way to tell you
about my thoughts right now is to tell you my thoughts at the
beginning of the week. At the time, I stated a bounce could be in order because
many areas were right at important support. Here is what I said:
“Near-term, I think we can get a bounce. Just remember, that is the trees. The
forest is the overall market…which has been a horror show. Why a bounce? The
same reason for the other bounces we have seen. The markets are already extended
to the downside…that’s for sure. But the other reason is that the RUSSELL 2000
(
RUT |
Quote |
Chart |
News |
PowerRating) is sitting right at support at 670…where it would be normal to
bounce. I could also say the same thing about the MIDCAP 400
(
MDY |
Quote |
Chart |
News |
PowerRating).
“Lastly, it’s end of month. You already know the shenanigans that goes on into
the end of every month/quarter.
Also of note:
The OIL SERVICES INDEX was the latest to do a bungee jump. It is at significant
support at $130…where it could also put up a fight. The same goes for many
COMMODITY names THAT HAVE BEEN WHACKED.”
Now let’s look at the charts. As you can see, the RUSSELL 2000 has held 670. The
MIDCAP 400 has held around 710 and the OIH held $130.
I would add one more major index that held right
where it needed to…the DOW…at 10,700. You can go back a year to see the
10,700 was resistance…which finally broke out. Every pulback has held at
10,700. It held in December and January. It held in June and it held this week.
I have no idea how far this bounce/rally lasts or how far it goes. I do know
that when support levels are held, it is a near term positive that will always
lead to upside testing. So far, I have not seen the conviction nor have I seen
the leadershipI want to see to tell me this move will have legs…but hey…I am
open to anything happening. I gather we will know a lot more over the next few
days as the market enters resistance areas. I will say this. The support levels
I outlined had best hold or what has been an ugly 2-plus months…will just have
another leg down.
Gary Kaltbaum