What to Do Now?
What should investors do now? The Standard and Poor's Index (SPX) closed on Thursday (April 13) of this holiday-shortened week at $2329, down $16. This close remains above the low at $2322 SPX hit on March 27. There are two ways to analyze the S&P 500 price chart:
- SPX remains in a sideways trading channel, but we may need to move our lower trend line down a bit, or
- SPX has been trending lower since it hit its high on March 1, setting up an imminent correction.
Standard and Poor's 500 Index (SPX)
Chart courtesy of StockCharts.com
I am inclined toward the former viewpoint of the broad markets remaining in a sideways trading range. Consider recent news events: the poison gas attack in Syria, and the US response, and North Korea's continued saber rattling rhetoric. And virtually every newscast is filled with stories designed to demoralize Americans, if not scare them about thermonuclear war.
How has the market reacted?
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