Markets rose on the first day of February, energized by strong earnings report from ExxonMobil and a positive manufacturing report. Where are stocks headed to from this point? Daryl Guppy, chief executive of GuppyTraders.com and a CNBC contributor, shared his market outlook.
“Key factor with the Dow is that we have quite strong historical support sitting around at 9,500,” Guppy told CNBC.
“You need to come back to this level and see a rebound consolidation develop.”
Guppy said if investors enter the rebound from 9,500 on the Dow, the downside target is below the 9,000 level.
“So it’s fairly critical that the support level hold and we get a rebound development taking place,” he said.
Guppy said the Nasdaq index is the best indicator for the stock markets as a whole, and it leads the U.S. market.
“If you look at the Nasdaq, you get about a week’s warning, which is important,” he said. “So the Nasdaq is the key factor we’re looking for and it’s already sitting on its historical support level at 2,200.”
“A fall below that gives us support at around the 2,000 level—so we’re looking at the Nasdaq’s ability to rebound from the 2,200 level. If not, to then fall and rebound from the 2,000 level,” he explained.
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No immediate information was available for Guppy or his firm.