This is still a suckers’ market. Big rally in the morning that was sold in the afternoon. All in CPI and FED’s expectations. Everyone knows what is going to happen, yet everyone freaks out. But from the technical perspective, the market hit resistance and sold off from there. On the chart below, we can see that the price almost hit 3,966 resistance right below 200-day MA.
And on the Ichimoku chart, we hit the red line resistance and sold off. Basically, the market got rejected on multiple levels:
The price trend is still weak and not gaining any momentum, so bulls have a lot of work to do to convince bears to flip the side (though I think it is a matter of time before it happens). However, for tomorrow, the outlook is bearish and we may continue selling:
If you want to learn more about our SPX weekly analysis, subscribe to our weekly newsletter.
Leave a Reply