The S&P 500 survived a test of the 50-day line this morning, but traders have pounded it hard. No instant gratification bounce as we have experienced the past four months.
We are now moving into lunch, and we still have expirations going off into the close. These quadruple expiration days can be weird – so I won’t be drawing too many conclusions until next week.
Thus far, everything is consistent with the 80-day nominal cycle dip – slated to bottom next Tuesday – if the alignment times ideally (which is rare).
We are in the zone to bottom it, and the fact it is a bit deeper decline than recently experienced is no surprise.
Let’s see if traders can hold the 50-day line into the close.
A.F. Thornton