U.S. Stock Market Bottom line: Equities have snapped back intraday, reclaiming about 75% of what was lost since yesterday.
But breadth is flat and the rally feels weak.
Can the S&P 500 (NYSEARCA: SPY) hold gains today?
Either way, this wouldn’t warrant a bullish thesis. And in any event should allow for Demark counts to complete into early next week. A negative close may embolden bears.
Tech and Energy are helping to keep the market afloat today (both sporting strong sector gains).
Overall, the stock market is susceptible to declines in the next 4-6 weeks.
S&P 500 “60 Minute” Chart
It was thought that bounces should prove minimal after a multi-day trend break.. but tech and energy stocks are helping to hold things up.
Above 2865 should lead S&P to test 2873-5 and potentially get a bit above.
On the flip side, the key for the bears is getting immediately back UNDER 2846 and eventually down under 2835.
S&P 500 Futures “Daily” Chart
Lack of breadth thrust does indeed seem to be a concern.
Futures should trigger TD SEQ sells in 3-4 days… echoing what’s being seen in SPX cash.
Twitter: @MarkNewtonCMT
Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
