Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Tech Wreck Leads Markets Into a Downtrend — Here’s Where Key Support Lies

by August 5, 2023
August 5, 2023
Tech Wreck Leads Markets Into a Downtrend — Here’s Where Key Support Lies

According to the Stock Trader’s Almanac, August has been the weakest month for the Dow and the second-worst month for the S&P 500 since 1987. (September is the worst month). This seasonal weakness, coupled with over exuberance among investors, has set the markets up for at least a pause after last week’s pullback puts both the S&P 500 and Nasdaq into a near term downtrend.

Among the catalysts for last week’s pullback was an uptick in interest rates along with an intolerance for less than perfect earnings reports that pushed down stocks such as mega-cap Apple (AAPL), among other companies. Earnings season can be a critical period for the markets as investor sentiment is revealed based on trader’s response to results. In bullish periods such as last quarter, negative news is overlooked. A case in point is Apple’s rally following their May 4th release of 1st quarter results, which also showed declining overall sales.

As for rising interest rates, they’re often a cause of angst for the markets – particularly for Growth stocks due to a reduced valuation of their future earnings. Since mid-May, the Growth-heavy Nasdaq has been trending higher despite a rise in yields as investors have been focused on reports of tempered inflation amid a stable economy. This is a departure from earlier periods when the Nasdaq has pulled back amid a rise in rates.

Daily Chart of Nasdaq Composite vs. 10-Year Yield

Whether you take action based on last week’s break in the markets will have everything to do with your investment horizon. Short-term investors will want to lock in at least partial profits and stem losses while keeping an eye on key areas of support for the broader markets. Longer-term investors can look to longer-term charts for guidance, as the monthly chart of the S&P 500 shows that the longer-term uptrend remains in place.

Below is a daily chart of the S&P 500 where I highlight the next area of possible support, which is at its 50-day moving average and is 1.6% away. Should the markets reverse trend, possible upside resistance will initially be the 10- and 21-day moving averages followed by the late July high in price at 4600. A move above this key level will set the stage for further upside.

Daily Chart of S&P 500 Index

If you’d like to be kept up to date on the status of the broader markets, as well as be alerted to one area that’s currently withstanding the downtrend elsewhere, use this link here to trial my twice weekly MEM Edge Report. This no-obligation offer will provide you with instant access to current reports.

Warmly,

Mary Ellen McGonagle, MEM Investment Research

0
FacebookTwitterGoogle +Pinterest
previous post
Capitol 911 false alarm was something very real
next post
4 new offshore wind projects planned in New Jersey

You may also like

Three Things I WISH I’d Known About Trading

February 7, 2024

2022 Q3 Earnings: Market Still Overvalued

January 5, 2023

The Fallout From FTX For Crypto, Coins and...

November 14, 2022

DP Trading Room: Equal-Weight RSP vs. SPY

April 10, 2023

Hershey Stock Pulls Back: Now’s Your Second Chance

May 24, 2023

Top 5 Stocks in “Go” Trends | Fri...

August 9, 2024

DP Trading Room: Why SPY, Not SPX? Dividends!

May 15, 2023

What to Do When The MACD Is Broken

September 28, 2023

Trading the QQQ in Three Time Frames

November 4, 2023

AI Stocks Ignite Again—Where Smart Money is Heading...

June 23, 2025

Three Things I WISH I’d Known About Trading

February 7, 2024

2022 Q3 Earnings: Market Still Overvalued

January 5, 2023

The Fallout From FTX For Crypto, Coins and...

November 14, 2022

DP Trading Room: Equal-Weight RSP vs. SPY

April 10, 2023

Hershey Stock Pulls Back: Now’s Your Second Chance

May 24, 2023

Top 5 Stocks in “Go” Trends | Fri...

August 9, 2024

DP Trading Room: Why SPY, Not SPX? Dividends!

May 15, 2023

What to Do When The MACD Is Broken

September 28, 2023

Trading the QQQ in Three Time Frames

November 4, 2023

AI Stocks Ignite Again—Where Smart Money is Heading...

June 23, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • North Korea lashes out after Trump DOJ exposes massive IT infiltration scheme

      July 4, 2025
    • Wimbledon winners to pay up to £1.3m in tax as HMRC claims £17m from prize pot

      July 4, 2025
    • Saudi defense minister secretly meets with Trump to discuss Iran de-escalation, Israel: sources

      July 4, 2025
    • Trump administration swarms SCOTUS with emergency requests and sees surprising success

      July 4, 2025
    • Mike Johnson touts ‘beauty of unified government’ after Trump’s ‘big, beautiful bill’ sails through Congress

      July 3, 2025
    • From Oversold to Opportunity: Small Caps on the Move

      July 3, 2025

    Categories

    • Business (8,380)
    • Investing (2,102)
    • Politics (15,942)
    • Stocks (3,189)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved