Please enable javascript in your browser to view this site!

Pullback to test earlier lows a decided negative into the close

S&P has given back all earlier gains after coming within 1 tick of 2094 and now breached earlier lows, which is a definite negative and not something Bulls wanted to seeThis opens up the door for a move down to 2065 or even 2048-50 before any bounce .  Will be important to hold here and attempt to regain 2071, but the act of getting down below this likely does lead to a bit more downside followthrough which serves to break the mild uptrend from early March..  both TNX and USDJPY have moved lower in the last couple hours.  breadth still pretty mild and less than 2/1 negative, but Tech losing all of its early gains not a good sign along with Energy, Financials and Industrials all selling off to the tune of greater than 1%-  Given that tomorrow is Friday, and not historically a positive day compared to the others, this sellling very might last until next week

 

While a strange move to give back all of its early gains and sweep back under 2071 lows in the course of an hour, it is a decidedly negative move technically, and should lead to near-term followthrough to the downside which could reach 2048-50 area before any stabilization and bounce.

Back to Do-or-Die territory for S&P and the act of breaking this minor trendline into the close and remaining under 2071 likely does suggest that at least some form of protection is needed which could see S&P future selloff to near levels found in early April.