The stock market has been ugly this weak as Chinese stock markets crash along with nervousness out of Greece. The Dow Jones is flirting around the key support level of 17,500 but I continue to watch the S&P 500.
The S&P 500 has twice traded below it's 200 day moving average this week which is really bearish because we could spiral of of control at any moment. When people are in fear mode, they sell. They sell because they have to (holding stocks on margin) or because they just don't want to lose more money.
The S&P 500 will need to snap back above 2060 soon or face a retest of 1950-2000. This is the area that you want to start buying heavily. Worst case, we will see a nice bounce before the next leg down. A close back above 2060 on good news should spark a rally back to 2090. We will be watching the stock market closely in the stock picks group.
If you are looking for more hot stocks, check out my 2015 Stock Gainers and 2015 Penny Stock Gainers.
