The latest decline saw the S&P 500 (NYSEARCA: SPY) slide under 2617, a bearish development that signaled a full retest of Monday’s low at 2583.
Will Friday’s low be enough? Or more testing Monday/Tuesday?
A retest or an undercut is necessary before any sort of snap back rally can begin. Was Friday’s low enough?
That said, it’s important to note that weakness may be limited into the FOMC meeting next week given all the hourly oversold conditions now present.
Even if the market remains weak, we should see the start of better relative strength in Technology (one of this week’s top performers, despite the market weakness).
Pessimism is starting to form a thick cloud around the markets into the holiday season.
Overall, while price action remains bearish, there are some signs of light that I will discuss in Monday’s Weekly piece. Perhaps this “Holiday Red” on our screens will take a reprieve soon.
S&P 500 Futures Chart (intraday December 14)
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Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.