Stock Market Teetering Near Key Level

 

I generally don't like buying weakness. I like buying strength. It keeps everybody in business and keeps performance numbers steady. When I see things turn up I'll be happy to add to our model portfolio but for now things are weakening and I prefer to be safe.

We saw the Fed buy less last week which takes some support from the market. We'll have to see how that develops each day this week.

The China outbreak spread seems to be lessening but media reports around the world are spooking markets. I want to respect markets... always, which is why I'd prefer to pull back a little. But when the market dust clears I want to be buying.

Apple (AAPL) preannounced negative and fear is that more tech will be weak. My concern on market risk though is not due to fundamentals. I expect fundamentals can hold up better than feared. I also think the second half can be very strong assuming the world can get past this outbreak.

I'm using 331 (SPY) as a key support. If we close below that then there's likely further follow through risk to the downside. The market's been straight up so it's very normal if it decides to pull back. We'll see what it wants to do and hopefully react accordingly.
 

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Disclaimer: Stocks reported by Elazar Advisors, LLC are ...

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