Inside Scoup: Stock Market Buying Opportunity
The markets are having another dramatic down day after a huge reversal rally yesterday. Europe is experiencing the same bank collapse the United States did in 2008. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is trading at $108.24, -4.13 (-3.68%), the SPDR S&P 500 ETF (NYSE:SPY) is at $113.54, -3.94 (-3.35%), and the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) $51.38, -1.65 (-3.11%).
Many investors are wondering whether or not the markets are heading back to the lows yesterday and possibly lower. The panic has resurfaced after yesterday massive 700 point Dow Jones Industrial Average reversal.
On a technical basis, this market has a bottom in place from yesterday. This is seen because of the technical analysis bottoming tail on the daily chart and the major reversal. As long as the pivot low holds from yesterday at $110.27, the markets should see and most likely will see another move higher. The one case for another leg down on the sell side would be if the pivot low of $110.27 was taken out on a daily closing basis.
The drop is being lead by banks. European banks like Deutsche Bank AG (USA) (NYSE:DB) continue to slide, trading at $41.06, -4.59 (-10.05%). Even U.S. banks like Bank of America Corp (NYSE:BAC) are sharply lower, trading at $6.93, -0.67 (-8.82%). Watch the levels on the charts. Again, as long as the pivot low from yesterday holds, this market is technically a buy on all pull backs. While scary, this is how a logical, non emotion trader is to trade.