What do the charts reveal about recession fears as uncertainty haunts the market?
Dan Fitzpatrick, Co-Contributor and Technical Analyst for RealMoney.com, joins the panel for this conversation. Following is a synopsis of his main points.
Analysis: I believe the chart has broken a multi-year uptrend of higher highs and higher lows, says Fitzpatrick. Many dip buyers are now losing money and the "I want my money back," dynamic seems strong. If the S&P 500 moves to 1,400 I anticipate big selling pressure will push it lower.
Analysis: The chart suggests this is one of the few momentum stocks that is not broken, says Fitzpatrick, because it’s still trading above the 50-day moving average after breaking below. I recommend buying it as close as possible to the 50-day moving average. However a breakdown below the last low will signal the end of this trade.