Resistance Holds as Stocks Reverse Lower

Yesterday's levels held firm on the upside.

Technical Edge — 

• NYSE Breadth: 16% Upside Volume (!)

• Advance/Decline: 33% Advance 

• VIX: ~$21.50

I like “line in the sand” setups. Either an asset holds that line in the sand or it doesn’t and that’s that. The S&P has a line in the sand that it’s breaching now. 

One other note: As earnings pick up, they will either stabilize this decline or accelerate it. That likely doesn’t need to be said, but I said it just in case. 

Plenty of individual stock setups below.

S&P 500 — ES

“The ES remains trapped below last week’s high and its long-term downtrend resistance mark.” 

Resistance proved to be a problem for the S&P, as it now rolls over and is, for the moment, failing to hold support. The S&P is quickly unraveling and for bulls, it’s alarming how quickly it’s cutting through the 10-day and 50-day, as well the 3920 level. 

If the 3910-ish area holds as support and the ES reclaims 3920, then a bounce back to the 50-day could be in the cards — even if they sell the bounce. 

Otherwise, a larger unwind down to last week’s low and the 61.8% are looking more likely, down at 3891 and 3883, respectively. 

SPY