After a big jump on Monday, the market acted as expected and retreated back closer to the 4,000 level. Futures are already down and below that level. There was very little to no news for the pop-up on Monday, so it could be expected that today, the market will retreat. But there was no news for this retreat either, so it was purely technical (and possibly emotional) trading.
We may expect this to continue tomorrow, too, that the market will go lower, but if there are no catalysts, the market will tend to go higher overall. The ichimoku chart below is still looking good but showing weakness again. The size and shape of the cloud are concerning. It may drag the market lower (which, so far, the trend forecasting indicates to happen) if it spooks enough of the fragile investors. The futures are already dragging the market down. Will it be a blip or a reversal?
Tomorrow, the trend will be lower if the forecast plays out. The black dash line is 2022 year major point of volume, so it is quite natural that the markets may struggle here, and prices will be bouncing around this level for a while until either bulls or bears take full control.
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