430 and 427 proved to be nothing, one would expect there to be some support at one or both of those areas. I published this chart a while ago which has a line at 424 which was the base of the June-July breakout. If the breakout structure tips over the low will be 414 which is the bottom horizontal line.
414 has more serious support, if that fails the next target is the air suspension support at 402. Being an optimistic person, I was hoping that Hawking Radiation from dividend adjustments would cause the gap to eventually dissipate. That sounded so cool I thought it might be right… silly Rabbit.
If 402 fails we get down into the rectangle and the 52 week SMA is at 380 and of course that is just a number. That’s a lot of stuff that has to happen for a 10% decline.
XLI has dropped bellow 100 and could conceivably fall another 10% to the 52 week SMA. I picked XLI as a bellwether some months ago
I’m not planning on doing aggressive buying until there is clarity. Buying at the close on Monday weakness is a high percentage move. I’m leaning against that idea at the moment.