The S&P 500 Digs into the 3K's!!

12 במאי 2022

Stocks have continued their decline, for the fourth day this week. This week has been abysmal for virtually all risk-on assets. We have solidly given up the 4K's, which we noted was likely to happen if 4009 was breached. We appeared to see some stability as we tested 3978 and 3963 twice, but the selloff reinvigorated, and we smashed through these levels with ease. We appear to be getting some support at the moment from 3909, the last level in the 3900 handle. If that does not hold, we will break into the 3800 handle with 3887 and 3867 the first levels of support if we plummet further. Both Kovach momentum indicators are deeply bearish, and registering oversold conditions. A relief rally is reasonable at this point, but we will likely find resistance at 4009 with 4068 a likely ceiling for now.