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.
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