The S&P futures staged a big selloff yesterday, triggered by a breakout setup on Friday.This selloff pushed Spoos through trendline support around 926; they found support around the June 3 low of 918.Yesterday’s selloff brought in early bargain hunters; what’s next for S&Ps?
The first warning sign for today was when yesterday’s low of 915.25 was taken out.This put further pressure on them. This pushed Spoos below important Fibonacci support at 912.00, a 50 percent retracement of the mid May low to the June double top around 953. A close under 912 would be bearish; next support is at the trendline at 905.88 today (will be 908.08 tomorrow).
In the short run a lower close will push momentum down to a buy signal level, which could bring in a short covering rally.Longer term, the down trend for stocks appears to be establishing itself more firmly.
Watch out below?
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