After yesterdays rout to start the week, the markets are starting Tuesdays session off with a more positive tone. Futures are up .6% or better, with Bitcoin breaking over the $8k mark overnight. For equities... have we seen the lows for this pull back?
Is it just the beginning of a more substantial pull back? For both of those questions my answer is... I don't think so.
While futures are rallying this morning, I think there is a good chance over the short term that the market comes down to firm support.
Yesterday the S&P500 held the 2800 level:
After hours S&P500 futures held the 2800 level.
Both will remain key support until we get that positive momentum shift.
I think this most recent record high pull back will start to reverse near former resistance at ~$277.50 for the $SPY. With it we will likely get that positive momentum shift, which would be a nice confirmation that the price action is shifting yet again.
So yes... we are getting closer.