Like other technical analysts, Salama sees wisdom in mirroring the crowd, but trend-following indicators can also provide crucial contrarian buy or sell signals.
Stocks have downward momentum, and the SPY just fell through the 434 level, which Salama said was key technical support.
The value of the SPY is roughly one-tenth that of the S&P 500, so that corresponds to a break below 4,344 for the index.
The SPY, a popular ETF mirroring the S&P 500, is oversold, according to the RSI (in blue).
5 high-upside stocks to buy nowAfter outlining his market outlook, Salama shared five stocks he's bullish on right now and gave a price target for each.
Persons:
John Salama, he's, Salama, it's, they've, he'd, David Keller, Salama doesn't
Organizations:
Maverick, RSI, Trust, Wall Street, Bloomberg