The midpoint of the new year comes in at 2772.86
The stocks are taking it on the chin with the S&P index down -26 points or -0.94%.
Technically, the price has moved below and away from its 200 hour MA (green line in the chart above). That helped turn the tide.
The next target comes in at the 50% of the move up from the January 2018 low at 2772.86. Yes, that is just the midpoint of the move higher. Doable? Sure.
Looking at the daily chart, the 38.2% of the move up from the November low comes in at 2752.38. The 50 day MA and 50% of that move up comes in at 2715.16.
We have been in these corrective moves before, so traders will be skeptical, but this time rates are moving higher and inflation is showing some signs of life. So the dynamics are a bit different. Plus we did have some extraordinary gains in stock in January.
Technically, stay below the hourly MAs and the sellers remain in control for the day.
