Hello Everyone,
The market started off with a large gap down; overnight futures peaked at 11 pm last night and drifted lower into the morning, and then had a sudden hard drop over a strong PPI number, and a decline in jobless claims, which leaves the door open for more rate hikes as inflation is clearly still very hot. The daily SPX closed right back at its 20 day MA, below this level the next support would be the uptrend line from early January, and an even wider uptrend can be drawn from the October lows.
Short-term the SPX remains in a tight coil pattern and is at the bottom of the range, however the onus is on the 'bulls' to fight to defend this area and push higher, otherwise it could break down and go to those lower support levels. Remember, both the SPX and QQQ had a bearish break in symmetry on the pullback last week, and thus we have a lower high in place so far.
The onus is on the 'bulls'
Matt
