No doubt we are oversold on just about every indicator imaginable, yet the S&P continues to press lower for the 4th straight day in a memorable fashion. I think we are at a point here where the bears, if they are too giddy about recent developments, could hang themselves by continuing to be too aggressive. Because when this market bounces, it will take a lot of their gains on the short side with it.
So far today, we’ve continued to muddy up the outlook for the markets, by breaking below key support at 1294 on the intraday (though right now it is holding that level), and also continue trading down and below the downward channel that we were stuck in for much of May.
Here’s the S&P Chart Breakdown.
