The selloff for stocks continues this week, states Bill Baruch, president of BlueLineFutures.com.
Now, 4010 has given way in the S&P 500 (SPX), joining large companies like Apple (AAPL) breaking well-established up trendlines. The Nasdaq (NDX) has retraced 50% from the Covid lows to the contract highs.
Three-Pronged Approach:
- Carnage in retail stocks is apparent, such as Stich Fix (SFIX). High fliers like Netflix (NFLX), as well as disruption stocks such as Coinbase (COIN), are down significantly.
- Negative sentiment is at extreme levels. With that said, has the market hurt the most amount of people?
- COBE Volatility Index (VIX) has not had the panic spike, yet do we really need one? The VIX Hedges are not performing like they were in 2016. Crude Oil continues to hold Support ($102.50-$104.50).
The ~$107 range is major three-star resistance, which needs to be broken through to get to $111. Silver has broken the floor we have been leaning on for the past two years. The US Dollar continues to make contract highs, which is hurting the Silver and Gold Bulls.
Learn more about Bill Baruch at Blue Line Futures .
