Sellers Continue to Dominate the Tape

An eventual rally is likely just a selling opportunity.

Technical Edge — 

• NYSE Breadth: 27% Upside Volume

• Advance/Decline: 29% Advance 

• VIX: ~$22.40

Apple continues to move lower, while Tesla just hit a new 52-week low. It seems like the latter is trying to bounce from significant support, but keeping an eye on these stocks makes sense for sentiment purposes. Not to mention, Apple carries a $2+ trillion market cap. 

At some point, the market needs to find its footing, even if it’s just to a relief rally before another sale. 

S&P 500 — ES

3827 is the “go, don’t go” line in the sand. Above it and last week’s low and the overnight high are in play near 3855. That’s also where 10-ema comes into play on the 4-hour chart. 

That’s followed by the 50-day near 3880, then 3900 and 3920. I don’t think we’ll see 3920 today, but that is a brick wall in my mind. 

On the downside, below 3827 puts the overnight low in play at 3803. However, I can’t help but see the significance of 3750, while the 61.8% retracement sits at 3761. 

SPY