Many technical minded people believe 1065 is an important level on the S&P 500 because that was the low of the "flash crash". We just bounced off that level. 1040 was the low for this move.

1 comment:

Onlooker said...

Breadth is horrid. Up:Dn vol is through the roof. Just when you think we've seen the height of capitulation selling we get another day where it's worse.

I'm sitting in cash, and happy for it. It would have been nice to be short but it could have gone either way. Now I really think we go down to a new low, possibly sub-1000 before a durable bottom with a substantial bounce.

ISEE numbers are still not showing panic either as call buying and optimism remains through this horrible breadth, somehow.

We've certainly got more room to go in terms of technicals, as we had a decent reset from the oversold levels.

Looks like the bear has returned. But I'm sure the slope of hope will continue on through the summer.