S&P 500 Index INDEXSP: .INX Trading Chart
S&P 500 Trading Outlook (3-5 Days): Looks right to buy into Thursday’s weak close for early strength on Friday, but Support violation could prove bearish into early next week.
Despite the sharp decline Thursday that caught many off guard, the S&P 500 failed to break the trend from March.
So a sharp 5% decline down to initial support seems right to buy dips. Yet, movement under 3k has little support until near 2955, so that certainly can’t be ruled out.
For now, I feel it’s right to expect at least a minor bounce into Friday, and if that fails into mid-day/late-day, then we’ll discuss that over the weekend and what this might portend regarding the larger trend.
For those inclined to trade this move, one should consider selling any bounce into the 3041 zone on futures.
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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.
