Wednesday, January 6, 2016

The 'New' Most Important Number For The S&P 500...........

The 'New' Most Important Number For The S&P 500

Weakness in Breadth, volume, sentiment, and momentum all lead Bank of America to warn "sell rallies" in stocks. Starting 2016 under pressure, the S&P 500 has big support at 1994-1990 but 1965 is the level at which things become perilous. Simply put, holding 1965 is required if a 'bounce' like late 2011 is expected.

The S&P 500 starts off 2016 under pressure. Holding 1965 is required to maintain that the S&P 500 is consolidating within a rising trend similar to 2011. Above the market 2038-2044, offers initial resistance.

Holding at 1965 is needed to keep the late 2015-to-early 2016 pattern similar to the bullish setup from late 2011/early 2012. A failure to do so would weaken the overall pattern for the S&P 500 and likely lead to a big move down.

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