Just a quick comment. The S&P 500 slumped 20 points to finish off the trading day. The bears might be making their move. The sell off was on heavy volume (bottom chart). The index closed right at the lower boundary of the “wedge/triangle” (top chart).
It’s important for the bulls to respond tomorrow to defend the trend line. If it’s broken then we have minor support at 1,229. I think a clear shot to the 1,220 level would be in the cards though. If 1,220 is broken, then a lower low would be put in. The probability for an end to the bull run we’ve had since early October would significantly increase.
Perhaps tomorrow will bring good jobless claims report. However, like I said in my prior post, we need good news from Europe. The market acting in a negative fashion, despite good economic data (Empire Manufacturing, Retail Sales, Industrial Production, etc.), tells me that it’s not about the U.S. economy anymore; it’s all about Europe.
Either way the market goes, I’d prepare for a big move in the coming days/weeks.
Pick your color Red or Black. I’m siding more with Red if we don’t have good news from Europe, which doesn’t seem to be the case.