S&P 500 Trading Outlook: Bearish for a move down to potentially 2600 in the next 2-3 trading days.
The bounce in futures proved minimal yesterday, getting only to 2720 before stalling and then giving way to strong selling last night in overnight trading.
The structure has definitely begun to get worse in the last two sessions.
The minor bounce failed and has now taken out yesterday’s lows. So patterns are suggesting a possible retest now of prior October lows after two failed bounce attempts.
While an uptick in fear could hold prices near 2600-22 this go-around, the structure looks increasingly like one that will breakdown eventually given the deep retests.
We’ll need to see a rally back up ABOVE 2764 to have any sort of confidence that lows are in, which at this point, is a long ways off.
S&P 500 Futures Trading Chart
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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.