Last night, T3Live.com’s Scott Redler was featured on Patti Domm’s CNBC Market Insider blog. Below is the excerpt from Domm’s blog, where Scott discusses the next step for the markets after yesterday’s sell-off.
“The market did slice through the uptrend that’s been in tact since Feb 5., and there’s definitely some technical damage,” said Scott Redler of T3Live.com, who follows the market’s short term moves on a technical basis. “The last time we broke this uptrend in January, it did lead to a nine percent correction.”
“At this point, we’re at a major inflection point. This time it seems like we’re too high. There’s too many problems right now and there’s too much headline risk,” he said. “We’ll look to see if the dip can be buyable. One level I’m watching is 1155 to 1160 (on the S&P), which is a 5 percent correction.”
Redler said even if the market finds its footing after a weaker open, Wednesday’s trading still should not establish the low of the current move lower. “We were 10 handles away from the 62 percent retracement of the entire 2007 to 2009 bear market down move. That was at 1227. 1217 was our intraday high. We were also 7 handles away from the 200-day moving average on the weekly chart,” he said.
Here is the link to the full article
