Biggest Stock Market Level In Years Still Holds
The markets are hanging on to the side of the cliff. They are unwilling to break and that is saving investors from an ugly death spiral. Last week I discussed a major trend line that starts at the pivot low from May 2009. If you connect it to the lows of 2010, the trend line extends to the recent lows in the market. This is the biggest level the markets have had since the 100% bounce from the lows of 2009. Should this trend line break, the markets will collapse, ultimately heading for the 2010 lows.
Mighty stocks like Netflix, Inc. (NASDAQ:NFLX), priceline.com Incorporated (NASDAQ:PCLN) and even Apple Inc. (NASDAQ:AAPL) could find their stock prices cut drastically.
It all comes down to whether or not this master trend line can hold. Watch it closely.