The S&P 500 Index hit a major money flow unit price target (MFU-4) and is reversing lower.
When an MFU-4 price target is achieved on a weekly or monthly basis, I take profit and begin looking for short opportunities.
The surge higher in the stock market to start the week propelled the S&P 500 up to its 3660 price target area. This is a high risk price area and I believe it will be difficult to push past this area in the weeks ahead.
The Homebuilders Sector has lower highs in place and a number of homebuilder stocks have broken below their regression trend channels. This may be an area to look for more selling in the weeks ahead.
The author may have 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.
