As expected, the markets ended down today. The manufacturing data came in showing the economy is cooling off and slowing. Investors cannot make their minds up. At first, they were cheering the bad data but then some unimportant FED members started blabbing about higher rates and the market participants pooped their pants. Despite all of this the market still holds critical support levels. We are below $4,000 but still above $3,940 where tons of puts are sitting. That provides significant support.
The daily Ichimoku is still in bad shape showing weakness. The price dropped into the cloud but we finished above it. It still can hit lower and that would be another bearish point to this crappy market.
The weekly Ichimoku shows no improvement either:
Tomorrow, the market price forecast indicates more weakness and I think it may happen given all other charts supporting more decline. The support at 3,940 may hold and we may see a bounce, though. But I think we will end down tomorrow too. Any bounce-up will be a reason for selling call spreads.
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