There is a lot going on out there today, so I’ll keep this to the point.
I am starting to register a series of lower-highs in term of immediate term TRADE lines of resistance (1192 and 1186). On the margin, that’s bearish. All the while, immediate term volume and volatility studies continue to support our call for May Showers in US Equities. We have been calling for a correction, not a crash.
All that said, every market correction finds its level of support. In the chart below, we show that both the immediate and intermediate term TRADE and TREND lines of support are converging between 1144-1152. If this market is going to have a slingshot rally, it should do it after testing this range.
If the SP500 doesn’t hold 1144, watch out below.
Keith R. McCullough
Chief Executive Officer