The S&P 500 has probed below the zone of support at 1937 – 63. This is a critical zone of support for the index that looks to be giving way. A breach would be a strong indication of another major leg lower underway.
The larger bias remains bearish, meaning surprises are likely to be to the downside. I continue to expect sharp downside price moves in the index once below support. On a new leg lower, the next downside target / support is 1820. Resistance above remains at 2034 – 55.
There is no reason to be bullish in the big picture at the present time unless the resistance zone at 2092 – 2115 were to be exceeded to the upside.
The Nasdaq-100 has reached the lower limit of the support zone at 4242 – 4323 and probed briefly below. A breach of this zone would shift the bias back to bearish in the near-term. Lower targets are 3845 and 3700.
The Russell 2000 index has probed below support at 1143 – 1157. A decline below this zone would suggest another larger leg lower as underway. The next downside target / support is 1040.5.
By Aaron Uitenbroek (VolumeAtPrice.com)
CEO of The i10 Group and a founder and managing partner of i10 Research. Some of the largest clients and consumers of Aaron’s market advice and analyses are Standard and Poor’s (S&P), Wells Fargo Advisors, Morgan Stanley Wealth Management, UBS, Credit Suisse, Edward Jones, and many more institutional investors, money managers, and financial advisors.
If you like this post, can you do me a favour and click the ‘Like’ and ‘Share’ buttons to spread the message and help others!
