This article is part of the series

The Chartman

More Pain Likely in Store for Wall Street

The ChartmanFOXBusiness

Oh boy, that was not a good week at all for the market. And the even-worse news: I’m not sure it’s going to get any better.

Before you look at the chart below, keep in mind that technical analysis is not some kind of portable Ouija board.  I’m not looking to tell the future, but rather put the odds in our favor.  I always think of TA as being similar to the house odds in a casino.  I don’t know specifically if you play red on the roulette wheel if you’ll win or lose.  But, I do know that if you play red every time, the house will always win.

Continue Reading Below

So, with that in mind, the odds say the market will drop further.

Now, if we do see further decline, I think it’s a good idea to start lining up your buys.  One I’m looking at is American Express (NYSE:AXP).  It needs to sink a bit more, but around $70, I think it’s a good bet.

One stock in the news lately is Booz Allen (NYSE:BAH).  The market usually overreacts to bad news, and the stock has been trending down.  However, I think it has a good chance of rallying, and if so, look to pick up some shares on renewed strength.

What do you think?

Click the button below to comment on this article.