Another zig-zag day and selling based on no news. Only fear of FED. But that is a known issue and worrying about a known issue is usually wrong. Bearishness again increased to January 2023 lows (after which the market rallied 10%), so the odds are we will be seeing a bounce. Of course, nothing is guaranteed and it may not happen if some news that spooks the investors pop out.
Right now, the markets are still holding critical support around the $4,000 level. There is a “wall of puts” at the 3,920-3,940 level so if we happen to go lower, these levels should provide additional support. However, the technical odds are still “down” and we will need more conviction from the bulls to turn this around.
The daily Ichimoku chart got worse and the price dropped all the way to the top of the cloud. On one hand, I expected this move as we had too much “white space” between the price and the cloud. But now, that we have arrived at the cloud, it needs to hold and we need to bounce from here to save the day. If we start breaking down, we will see more troubles.
The weekly chart is at the same undecided level. The price has a hard time breaking above the cloud. The chart is sideways with a bearish outlook.
The market was supposed to rally, but instead, it was trading sideways and selling off at the end of the session. There was simply no support buying and other charts didn’t confirm the trend. Tomorrow the trend forecasting suggests a choppy trend that should end bullish but again, we do not have a confirmation from the other charts so odds are that the market will end flat to down tomorrow.
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