Timing is Key: Wait for These 2 Signals Before Investing in Stocks, Advises Technical Analyst

Technical analyst Katie Stockton of Fairlead Strategies advises investors to wait for two signals before buying stocks. Stockton is monitoring the 4,600 level on the S&P 500 and the momentum-based stochastic indicator. She believes that intermediate-term momentum remains downward, and until the S&P 500 breaks above its resistance level and the stochastic indicator turns up on a weekly basis, it is best to remain cautious. If these criteria are not met, Stockton will be watching for potential downside levels of 4,325 and 4,195 on the S&P 500.