No surprise to see the S&P stall out as it challenged prior highs around 1,850. What’s important is how the S&P behaves as sellers take a run at it. First support level is the 50-day MA, then 1,810, then the 20-day MA. Shorts may be able to squeeze something out of this on the way down, stops on a close above 1,850, but probably not one to hold on to for too long.
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The Nasdaq breakout is under pressure after today’s loss. It hasn’t lost its breakout, but should it do so it will leave a ‘bull trap’ and offer a shorting opportunity. A close below 4,231 confirms a ‘bull trap’.
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The Russell 2000 closed with a bearish reversal after touching what was neckline resistance. It remains the best shorting opportunity of the indices. Stops go on a close above 1,165.
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The next few days will be interesting. Sellers will attempt to push their advantage, which may give shorts one or two days to work their magic: look to MAs (50-day or 20-day MA) to take partial profits and let the rest ride.
