The video in this report is only accessible to members
The video in this report is only accessible to members

The near-term technical structure has worsened a bit this week with the break of 4100.  While I ultimately expect any further pullback to prove mild and not undercut 3885 before turning back up to 4250 and higher, one can’t rule out more weakness based on this week’s decline. 

I expect this to prove to be minor rotation out of some of this year’s strongest outperformers thus far, like Communication Services, Consumer Discretionary, and REITS while Energy and Healthcare start to gain ground. 

SPX structure looks to have carved out a simple Elliott-wave style ABC decline on hourly charts, as shown below.  However, it’s still difficult to know whether a second ABC will now unfold which could create volatility into/after next week’s CPI report. 

It’s thought that current weakness will be successful in reigning in some of the recent rise in short-term sentiment while also alleviating some of the short-term overbought conditions, both of which would be positive developments. 

At present, it’s right to buy dips, but it’s hard to have conviction just yet that this week’s decline has run its course.  Important support lies near 3980-4032 which should be attractive to buy dips on any fur...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Want to receive Regular Market Updates to your Inbox?

I am your default error :)