Down 6.9% for the month!
That’s the damage on the Nikkei after yesterday’s 4.5% dip, putting Japan’s market down 10% for the year (so far). China’s Shanghai dropped 3.4% in response to Trump’s Tariffs but, so far, China has not responded in kind so, as we expected, the indexes are finding a bit of support at S&P 2,640, which is exactly what we prediced they would do on Wednesday morning.
Remember: I can only tell you what is likely to happen and how to make money trading it – that is the extent of my powers. The rest is up to you!
In the case of our S&P call from Wednesday morning’s report, the 80-point drop from 2,720 to 2,640 was good for gains of $4,000 per contract (you’re welcome!) and now we’ll see what kind of bounce we get on the way to a full correction at 2,400, which will be good for another $12,000 per contract if all goes well (or badly, I suppose).
As 2,640 is the 20% line on our Big Chart (a level we drew more than a year ago) and as the fall from the 25% line at 2,750 was 110 points – we’ll be looking for 22-point bounces to 2,666 (weak and satanic) and 2,688 (strong) and, if the weak bounce fails to hold today – look out below on Monday! the next proper support for the S&P Futures (/ES) will be the 15% line at 2,530 and the next stop below that is our 2,400 goal (2,420 to be exact). THEN we get excited to buy things – despite the Trade Wars.
Until then, we have plenty of longs and plenty of hedges so we just sit back and watch and wait. The US and European markets are closed next Friday (my Birthday, actually Thurs but it’s celbrated on Friday this year) and Easter is Sunday and that Monday will be slow and that whole week will be slow, as will the weak before (next week) so not the best time to determine what levels are holding up but a great time to take a break!