For one interest rate expectations continue to grind higher. This will continue to weigh on equities. As well as all the other head winds that have yet to subside in 2022 including high energy prices, war, conflict, inflation.... and on and on and on. All in the face of a FED that has flipped 180 on its asset price perspective.
The S&P500 hit the trendline around $430 marking yet another lower high
before falling to the current low $390s.
I think we are nearing a real moment for this market perhaps as soon as tomorrow. With the trendline support/resistance looming....
A break brings the $330's for the $SPY as the next long term support point.
Seeing how we bottomed around $220 for the COVID lows, that would be a 50% move from there.
That $390 level in the short term will be key for not just the next few days, weeks, but for the rest of 2022 and early 2023. A break of $390 I believe will set the market up for fresh lows in 2022 and a move down to the low $330s' on $SPY. From there I think we could see a meaningful bottom made, if not at least a very strong buyable rally from that level.
That is all for now. Have a wonderful day. See you in the chat room.