We had another selloff based on no news, just recession fears. Since most people working on Wall Street are on vacation, this selling is mostly retail. That could be good as it may spark a rally in January.
However, the problem we are seeing is that the market is breaking below its support. The chart above shows the price still holding at 50% Fib retracement, but the chart below indicates that this support is crumbling as the price closed below the red cloud line.
The expectations for today didn’t play out, and expectations for tomorrow are negative. There is a possibility that the market will try to return to the point of control at 3,840, but then it may go lower from there. And it may not happen at all, and we may continue selling.
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