10% Correction in the Markets? – It Could Happen

Tom Gentile

Posted in Technical Analysis

By: Tom Gentile on January 20th, 2022 • 2 mins read

The Markets Sold Off yet again Today

The markets tried to rally off their lows today, but the rising interest rates concern is still prevalent in investors minds it appears as the Dow, NASDAQ, and S&P 500 all trade lower and ended up at or near their lows on the day again.

The NASDAQ

Nasdaq Composite, based on today’s trading results is now already off its November high by more than 10%. With interest rates rising to start the year, investors have decided to continue to sell off their tech shares.

Bullish or Bearish Consideration

Consider executing your research in a manner that either searches out stocks at a deemed support level so you can watch its price action from that point and decide if you anticipate that support holding and then bouncing higher from. It’s at that point one might consider bullish option trades.

-OR-

Assess support price areas to come and assess if that is enough of a further point move that may warrant opening bearish options trades on.

If SPX, which is the S&P 500 Index sees a 10% drop off its highs, by my assessment that may mean the SPX could trade down to the price area of 4320. ( I am not saying it will go there, but that is what I see the math saying.

SPX S&P 500 January 20th, 2022

App: Toms Option Tools

Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.

Other times I will have other charts may work to amplify my educational points. 

Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.

Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.