The members of CNBC Halftime Report (Josh Brown, Joe Taranova, Steve Weiss) are blasé about the decline today.
- “None of my clients are talking about selling”
- “If you are leveraged with the carry trade, there is no reason to sell”.
That may all be true. What about technically?
Technically, the low price today shortly after the open moved to and through its 200-day moving average at 15826 .12, but could not extend to 50% of the move up from the October low at 15607.46. The low price reached 15708.54 in between those two levels. I outlined this in the earlier video (CLICK HERE)
The subsequent rally has now taken the price to a high of 16389.75 (just now) and into what I outlined as esistance and likely a tough nut to crack on the topside. That area comes between 38.2% retracement at 16330, and the high of a swing area up at 16538.86.
If the price can extend above that area (the higher yellow area on the chart below), a run to the 100-day MA would be the next target. That level comes in at 16879.38.
Watch 16538 on increased buying.
