The single most important thing to do today is “watch and wait.”
Stocks got slammed yesterday. For all of the carnage, the S&P 500 held its bull market trendline. If the TOP is indeed in as many are claiming, we should take this line out shortly. Something to watch before panicking.
The NASDAQ, despite an absolute bloodbath, didn’t even get to its trendline. Again, for all the screaming that THE TOP is in and stocks are entering a bear market, we’ve not even taken out the clear and obvious bull channel of the last four months. Let’s take a deep breath and watch to see what happens before we panic and dump our holdings.
Outside of stocks, precious metals also held support.
Gold is forming a clear triangle consolidation pattern. The fact the precious metal didn’t collapse more yesterday is a very positive sign.
Silver, which is a much more volatile metal also held support. Here again we need to wait and watch. If the markets are indeed entering a “risk off” environment, silver should take out support with little difficulty.
These are four charts I’m watching today. Rather than trying to predict the future, I’m letting the market tell me what’s what. I suggest you do the same.
Graham Summers
Chief Market Stategist
Phoenix Capital Research
