Hey, Ross here:
The S&P 500 sold off by 4.2% in the shortened trading week, and the Nasdaq by 5.8%.
To put that into perspective, the decline in the S&P 500 was closer to 7% in just three trading days in the early-August selloff, while the Nasdaq fell over 8% over that same period.
Yes, there’s blood in the street – but that doesn’t mean it’s time to panic.
The chart below shows a critical level I’m watching in the index.
Chart of the Day
By adding a volume profile indicator to a daily chart of the S&P 500 index, we can see where most of the trading has occurred over the last few months.
Looking at the profile along the right side of the screen, you can see the 545 and 530 levels have seen high-volume activity.
These are areas where buyers and sellers tend to meet. They act like price magnets.
The white box is the 538 area – which has seen almost no trading activity.
This is the critical level I’m watching.
Historically, low-volume nodes like this tend to be either rejected or blown through quickly.
In other words, if the market does not bounce here at the beginning of next week, expect to see the selloff continue.
But even if the selloff continues, this doesn’t mean there aren’t any opportunities in individual stocks.
It just depends on whether your edge persists in a negative momentum environment.
Insight of the Day
In this kind of environment, you want to use an edge that is independent of market momentum..
And it also allowed me to take fast 30 – 40% profits on insider recommendations even as the market sold off last month.
This is the edge you want to use in this environment.
So make sure you click here to save your spot for my live insider masterclass tomorrow morning…
And I’ll show you everything you need to know to start using this insider edge for yourself immediately, including:
- What compels these insiders to buy…
- The warning signs you need to know when following the insiders…
- And the most powerful – yet counterintuitive – insider buying signals there are
See you at 11 a.m. ET tomorrow.
The login info will be in your inbox before the masterclass starts.
Ross Givens
Editor, Stock Surge Daily
