A Tentative WayPoint

It looks to me like the main point at the start of this week, is that virtually no one thinks the recent highs are a top.  That is important.  After all the fear and volatility of the last 7 trading days,  now traders are trying to figure out where to be buyers.  With the S&P market this morning already up 5 percent from the extreme low of last week, there will no doubt will be a tentative nature to today’s trade.  So look for a tighter range, maybe 2610 to 2670 on the S&P.

We continue to believe the market has topped and that the major support level on the S&P is 2311 at this time.  Two technical factors, 1) the steepness of the decline, and 2) the lack of a clean-out trade point to further declines down the road.

Posted at 8:14 AM CST 2/12/18