Daily Market News - 21st Dec 2021

Market Rebound Levels

it’s been a tough old market these last couple of weeks.

If you listen to the fear mongering in Financial media, it’s probably been pretty stressful. Thankfully I prefer to pay attention to the charts and I have a few I want to share today.

I don’t like to use the magical hindsight indicator and if you picked up my work at the weekend where I put out many charts with key support levels (I’ve included below for anyone who missed it), I’ve remained bullish on the market, but have been waiting for the right time to add on dips and hopefully the charts below show why. I think it’s worth sharing since it’s Christmas.

Russell 2000 Chart - IWM

The small caps put in an epic failed break out a month ago and it’s been carnage across the board for those of you caught out with too much growth in your portfolio. I’ve been watching this chart like a hawk over the last few weeks expecting a move to the bottom of the range (range bound charts tend to do this).

Bullish divergence, good risk reward propositions, Technical support levels… ticks a lot of boxes in my world.

S&P500 ETF - SPY

Same story with the S&P500. Stuck in a sideways range. Buying at the bottom of the range is very logical.

Technology ETF - QQQ

You’re seeing a theme here by now - same story - logical rebound levels in the QQQ’s after a decline that’s on par with previous declines.

I prefer to focus on buying stocks in this type of environment.

Defensive areas (Staples and Utilities) have been doing well these last few weeks, but as long as we’re above the levels I’ve highlightd in the major averages, it’s probably a risk on environment and “buy the dip” is probably gonna win again.

If you’re looking for charts to buy, there are plenty for you to choose from below… I laid them out at the weekend and they look to be going to plan.

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