S&P 500 Trading Outlook (3-5 Days): Bearish
Thursday’s snapback rally looked to be counter-trend in nature and should stop Friday and/or Monday and turn back lower.
We would need to see the S&P 500 rally more than 61.8% of the Tuesday to Thursday decline to lessen our bearish short-term conviction.
There is no real evidence of anything more than a minor bounce.
It’s thought that Wednesday’s negatives outweighed Thursday’s positives. A bit more rally is possible but look for selling to resume.
The choppiness from last week into early this week faced a severe pullback that undercut the lows of the consolidation Wednesday (bearish).
Until this week’s highs are exceeded, it is right to look for lower prices.
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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.
