This is going to be a fun week for investors. After the what seemed like a market in free fall last week, maybe we find some support at least long enough to catch our breath. There is plenty of economic data on tap this week and we conclude with the infamous jobs report on Friday. Earnings will lead the parade as the busiest week of reporting happens. Cisco, ExxonMobil, UPS, Pfizer and Time Warner just to name a few are all on tap. What does all this mean? I am not a prophet, but it will keep it interesting. That is why in my Notes this morning I wrote about the importance of managing your money versus the trying to predict the market.

If you have not taken the time to adjust your stops and evaluate your positions, no better time than the present. The market has surpassed what many, me included, thought it would do at this point to the downside. Earnings have been solid, GDP was positive and the estimates for the first quarter are optimistic. However, the market is looking beyond these numbers and sees something negative on the horizon. Thus, the selling. Scanning the markets over the weekend left me with one primary thought, find support and then evaluate. The major indexes have taken out each level of support with relative ease. That alone leaves me skeptical short term.

There are two charts below and they put this issue into perspective. The first is the S&P 500 index. The index broke support at 1115, 1100, 1085 and 1070 is next. 1030 looks like the likely stopping point based on the current activity, but we will have to see how this plays out. I want to see support first then we will make decisions from there.

The second is the NASDAQ index. In a similar fashion we broke support at 2270 and 2205. Now we face 2145. I show 2035 as a potential support level to define the existing risk as a potential. The key is finding support and building a base. Be patient and let this develop first.

There are plenty of sectors in similar situations. I covered them on the podcast posted today as well. Plenty to consider, but the most important is managing the existing risk to your portfolio one position at a time. Don’t assume, be disciplined in your approach to managing your money.