SPDR S&P 500 (SPY): The stock market saw some early selling...

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annabelletrader

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annabelletrader

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Monday, 01/23/2017 4:38:54 PM

Monday, January 23, 2017 4:38:54 PM

The stock market saw some early selling today, but was able to shrug it off and float back towards the flat line. The reason why the market was able to avoid a large collapse was due to a trend line connecting the lows of December 1st, 2016 to December 30th, 2016. This can be seen in the chart below. Today's lows tagged that tend line perfectly. Investors should simply follow this trend line. As long as the market remains above the line, stay bullish. If the stock market breaks below the trend line, quickly sell all longs and be very bearish.

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