The S&P 500 Index (INDEXSP:.INX) is retesting the lows from Monday near 2,120. This is an area of important chart support that I have talked about recently (see my post from Monday).
Other areas of technical support and interest for traders:
A measured move based on the small head & shoulders top targets 2,100 on the S&P 500. Additionally, trend line support off the lows since February comes in around 2,100.
Should 2,100 give way, the next focus of support comes from the 200-day moving average down near 2,058. That would also be close to a 61.8% retracement of the rally since late June. The stock market does feel heavy and on the two down days (Friday and Tuesday), market breadth has been terrible. With this type of price velocity, it’s fruitless to stick your neck out and make some bold call in the near-term so lets see how this settles.
That said, I continue to recommend layering into price weakness if you need more equity exposure. For instance, my plan includes buying at 2,120, 2,100, then on the test of the 200-day. This takes the emotion out it.
Thanks for reading.
You can contact me at arbetermark@gmail.com for premium newsletter inquiries.
Thanks for reading.
Twitter:Â Â @MarkArbeter
The author has a long position in S&P 500 related 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.
