S&P 500 rolls over on Tuesday again

The S&P 500 was very noisy during trading on Tuesday, breaking down significantly immediately. The uptrend line underneath should continue to be support though, so I think that it is only a matter of time before the buyers jump back in. The 2610 level should be a “floor” in the market, and even though that we have broken down as of late, I think that part of the issue that we see more than anything else is that interest rates have rallied in the 10-year note. I believe that there are a lot of concerns when it comes to the strengthening US dollar, but ultimately I think that if we can stay above the uptrend line, it’s only a matter of time before the buyers return. If we were to break down below the 2600 level, the market could unwind rather drastically to the 2500 level.

If we were to break down below the 2500 level, this market would unwind into a massive bear market, and that could White things out rather drastically. If we turn around and rallied from this uptrend line, I suspect that the 2700 level could be the target, but it’s going to take a lot effort to break above there. As we are approaching warmer temperatures, a lot of times New York traders will step away. I don’t know if that’s what’s happening, but certainly it looks as if we need to make a decision in this general vicinity.

S&P 500 Video 02.05.18