The Breakout for Today: Mercado Libre Inc. (MELI)

Hello my Investors, Traders and Reader Friends. Yesterday, the market returned to give signs of weakness. Almost all day, the Bears were in control of the market. In the few moments that buyers give pride of life signs, vendors come out with more force, pushing down the market. In the end, the DJ-30 under 0.76%, the SP-500 fell by 0.54% and the Nasdaq Comp. did at 0.55%. A noteworthy aspect is what happened to the DJ-30. This index fell back below the 12.800 points. To consolidate this fall, would have fallen into a bull trap, confirming the correctness of the market. I think this will be one of the most important aspects to consider in the following days. An eye in the DJ-30 and 12.800 points. Furthermore, the volumes of shares traded were higher than the previous day. However, these levels were not substantially higher. In any case, a fall in the market with an increase in volumes usually is not good news. Similarly, the CBOE Market Volatility Index VIX, returned to soar yesterday: 8.19%. This is another story that does not help the bull market. In conclusion, the market yesterday not suffered a major disaster but showed signs of weakness. This could trigger a short term correction. Yesterday, the DJ-30 closed at a level very close to SMA 18 days. Probably tomorrow will have to challenge this level. Ifvictorious, the more likely is that the market return to the path of ascent. If it falls below this level, then will head to the level of SMA 50 days. Yesterday, this support was located in the approximately 12.433 points. Despite all this, some stocks performed well. One such case is Mercadolibre Inc. (MELI).This stock closed yesterday at U.S. $ 99.24, up 4.21% over the level of the previous day.Volume was 1.10 Millions of shares, representing more than double of what is traded daily. Yesterday, MELI broke a very important base price, which would allow him to keep climbing. So long as the market allows.

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