What Happens If The S&P 500 Goes Below 1,900 Points ?

Dow Jones Average Slips Downward As Traders React To Selloff In Emerging Markets

In order to analyze the ongoing downward correction at Wall Street, you need to focus on two big numbers: 1,900 and 1,700, these are the resistance levels the traders are fearing


Sooner or later, the day when Wall Street will fall into a “panic-selling” sentiment will come again, that’s something statistically true.

However, not every correction is a trend reversal, and this why it is very important to understand whether a downward movement in stocks represents a simple technical correction or the beginning of something bigger.

So how do you do that ?

Here you are:

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We may have three different scenarios:

1) If the index doesn’t go below 1,900 then you are seeing a very small downward correction

2) If the index goes below 1,900 but stops at 1,700 then you are seeing something pretty big, but that’s still a correction

3) If the index goes below 1,700, well, you don’t want to hold stocks in that case


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