Good morning. Happy Tuesday. Hope you enjoyed your extra day off.
We enter this week with the market sitting on edge. The indexes broke down last Thursday but recaptured support at the end of the day. Friday saw slight selling pressure, so once again the market sits on support without much room for error. Every other time this situation has surfaced, the bulls stepped up and defended their turf. Will today be any different?
The futures market tells us it’ll be tough. SPX futures are down almost 20 before the open; they’re right at Thursday’s low and well-below support. The market has been able to absorb a great deal of negative news the last couple months without completely breaking. Many cracks are in the damn, but so far it still stands. At what point do the bulls throw up their hands and say: “that’s it, we can’t keep doing this.”
Here’s the 30-min SPX chart. If 800 is taken out, and the bulls don’t quickly step up to defend their position, a quick move to 750 is likely to follow.
headlines at Yahoo Finance
movers & shakers from MarketWatch
upgrades/downgrades