S&P 500 Trading Outlook (1-2 Days): Bearish
The rally that began yesterday hit price resistance at 2665-70 before turning back lower.
At present, there are insufficient signs of a low in place for U.S. stocks, and many sector ETFs like XLI (Industrials) and XLF (Financials) maintain bearish posture and look to have more downside.
Early rallies on the S&P 500 are being sold today. The odds favor a pullback over the next 7-10 trading days before any low is in for stocks. But a delayed reaction to the Federal Reserve is always possible. A move OVER 2682 is needed for any type of bullish stance is warranted.
2631 and 2623 are both important support levels. A move below 2623 would lead down to 2609-11 in a test of April 25 lows.
For the near-term, the trend seems to favor prices pulling back.
Twitter: @MarkNewtonCMT
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.
