The S&P 500 first rallied to last night’s Globex high at 4377 but rolled over short of the goal at 4358. Though it filled a small gap, the market came back down through the open. Both actions showed weakness, and now a retest of the January low is underway.
S&P 500 Cash Index – Hourly Chart
The market is running into buy orders around the 4270 support level mentioned this morning. This level connects a trend line from the Covid Crash March 2020 low through the January low. Absent a flip from that line, a reversal pattern on the hourly regular session chart projects a full retest of the low around 4200. If all other measures confirmed it, it would make sense to buy the retest in a bull market.
Let’s see how it goes.
A.F. Thornton