The S&P 500 Index declined well below its regression price trend channel this week while seeing an expansion of downside momentum.
As mentioned in prior analysis, we believe the MFU-4 price target zone achieved in September was an important high. And as such, we are now cautious and on alert for volatility.
That S&P 500 created a lower high, generating a bearish Money Flow Unit (MFU). In short, things don’t look great for stocks right now. We are oversold now, so expect a choppy, volatile market into November and perhaps year-end.
The author has a position in the 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.
