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Are we stuck below resistance and heading lower?

The market seems to have a lack of strength (not enough buyers) at 2800 level to break and move higher. Fortunately, bears do not have enough power to push the market lower either. You can see that, so far, every selloff has been bought up; but this strength seems to be weakening every day.

Unfortunately, this is to the advantage for bears and if we do not break 2800 level (and ultimately 2814 level too) soon, this market will drop.

The odds of going lower are larger every minute. As of now I favor a drop back to 2750 level (200 DMA) to find buyers down there. Tomorrow seems to be crucial to determine the market’s direction. If declining keeps accelerating, more and more bulls will start panicking and running to exit to avoid an imaginary rout they have experienced in December. And they will self-fulfill their own “prophecy”. We need a breakout soon, ideally this week. If it won’t happen, expect going down.

S&P 500

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