The market selloff is gaining steam as buyers have moved to the sideline after a brief pause earlier in the session.  This is the downside move that’s been in the works for a long time, and considering how much the market is up, there is further potential downside.

Fundamentally, the market is fine, and in fact, earnings and economic data out today support much higher share prices.  Be that as it may, this is a big test, and I think useful test.  It makes for the perfect backdrop to President Trump’s ‘State of the Union’ address tonight.

If he lays out his achievements and ideas the way he did last February when he spoke before a joint session of Congress, the market will have something to cling to in the morning.  I think he will knock it out of the park.

Dow Jones Industrial Average key support points:

• 26,017 (Recent resistance breakout point)
• 25,027 (50- day moving average)

DJIA

S&P 500 Key Support Points:

• 2,798 (recent breakout point)
• 2,719 (50-Day moving average)

S&P 500

NASDAQ Key Support Points

• 7,296 (Recent breakout point)
• 7,078 (50-day moving average)

NASDAQ

We aren’t panicking, and in fact, we are looking to buy the dip.