Stocks Sink On More China Headlines, And Are Now At Critical Point

By Michael J. Kramer of Mott Capital Management

Founder/CEO at Mott Capital Management, LLC • Aug 23, 2019 at 9:26 PM EDT

The S&P 500 fell pretty sharply today by about 2.6% worth. It managed to close right in that critical zone of support around 2850.

Well, that didn’t go as planned, now did it? Powell didn’t say much that was new. But if you listened to what he said, the current environment supports further rate cuts based on the geopolitical factors.

The S&P 500 fell pretty sharply today by about 2.6% worth. The S&P 500 managed to close right in that critical zone of support around 2850. I call it critical because the next stop is 2825, and I’d rather not find out if the market can hold support there again.

(Click on image to enlarge)

The market now finds itself in a precarious spot and the next 1% is going to be very telling, if we retest the lows of Junes, or if has enough strength to retest 2935.

It becomes that simple for now.

Being it is Friday, we will leave it at that, with more over the weekend.

Disclaimer:

This article is my opinion and expresses my views. Those views can change at a moment's notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly, and I do not trade my account on the stocks spoken of in this column unless fully disclosed.
Additional Disclaimer: Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.