By: Steve Smith
We had another hard day in the indexes. As I write this it looks like the S&P may close down over a full point, and the Nasdaq looks like it’ll be down around 2 points.
I know a lot of retail traders are starting to get really antsy because the market has been trending down the last few weeks…
But trust me when I say there’s no reason to worry.
As a matter of fact, there is reason to be very excited!
I can’t get too deep into it right now, because I have a lot of work to catch up on this afternoon. (I did an in-depth training session at 1 pm – so I’m running a bit behind.)
So let me just say this, we haven’t even entered corrections territory yet. (A correction is defined at a 10% drop from the previous high.)
Before we can even call the recent price action in the S&P 500 a “correction” we need to drop to somewhere between 4000-4100. We’re nowhere near that right now…
What I am trying to say is that the price action for the last few weeks is healthy and to be expected.
Frankly, I expected it well before September, and now that we are getting it I’m glad to see it.
This is how the market creates a new support level, then it starts the upward run from there again. Nothing goes straight up forever.
I can tell you that we are taking full advantage of this price action in Options360…
To Your Success,