What a week! We saw the bulls get taken to the woodshed unexpectedly after everything appeared to be on the ‘up-and-up’. Once again, the bears have fought back and doing so right at the cusp of completely handing this market over to the bulls. Some great drama! The S&P broke both the 50 and 200 day moving averages, held 1130, broke through support levels at 1107, 1088, and finally today at 1080. Next test will be at 1056, 1040 and finally at 1010 . Market ’em down because those are the remaining support levels before the bottom falls out of this market.
I wouldn’t count the bulls out quite yet, but after the week we just saw, I’d be shocked if we didn’t at least head back down to 1040 – the head & shoulders neckline. We will have to wait and see, but for now the market is already back in oversold territory on some indicators but the 2108 is only halfway there. I’ll post the reversal and the T2108 later over the weekend.
For now…get rested up, enjoy the weekend with family and be ready again on Monday.
