Major Averages Finish In Positive Territory
A dramatic reversal took place in the markets during the last hour of trading today. The Dow Jones Industrial Average was down triple digits for most of the day, but finished the session 10 points higher at 10,012. The fact that the Dow rallied above 10,000 at the close is a nice sign that the sell off may be losing momentum.
The S&P 500 finished the day 0.29%, or 3.07 points, higher at 1,066. The important support level in the S&P to keep your eye on appears to be 1,065.
The Nasdaq market had also been getting thrashed throughout most of the day, but managed to finish in the green by almost 16 points at 2,141.
This reversal seems to be a constructive development as investors are looking for a sign that it is safe to venture back into the equity market waters. I believe that we now have a level to keep our eye on in determining the near term direction of the market. I would not be a buyer just yet, but if you do want to start accumulating stock in anticipation of a bounce, watch today's intra-day low as a key level. If the averages are able to trade above this mark next week, about 9,840 on the Dow, it is likely a positive sign that we have found a bottom. If this level is broken, however, it may mean we have some more room to the downside.
