S&P 500 Index Trading Outlook (3-5 Days): Bearish
Price fell throughout Thursday’s session and could pullback further.
That said, my eyes are on 2825 on a closing basis. I’m staying defensive unless/until 2825 is exceeded on a close.
Key points:
1) This remains a bear market bounce, NOT the start of a new bull market
2) Any stalling out by late April that backtracks likely will NOT reach new lows right away given the extent of our rally.
S&P 500 Index Chart
Despite the perceived strength on Wednesday and half-way through the day Thursday, S&P 500 Index patterns really didn’t turn too bullish on a closing basis. And the late day selling combined with Intel’s (INTC) after market plunge could be important for stocks in resulting in a reversal.
Any pullback under 2727 on the S&P 500 would result in this ominous looking pattern on hourly charts giving way, leading straight to 2637-40 which is more important structurally in the bigger pattern from late March.
Given the cyclic importance of 4/24-5, my thinking is at least a near-term pullback is overdue for stocks, and Technology very well could lead the way down for stocks into next week.
Only a move back up over 2825 on a daily close changes the trend to bullish. Until then, a defensive stance is likely the way to go near-term.
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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.
