S&P steps lower.
The S&P index has been opening lower, recovering but stepping down. To those that saw the Nasdaq futures down 125 in pre-market trading the rise to only down 70 points seems like a huge rally.
Looking at the S&P, the index moved further away from the 50% retracement of the move up from the August low to the November high. That comes in at 1991.78. Yesterday the close was just below this level at 1990.26. Today, more pressure and a move below the 61.8% There is a gap on the daily between 1951.36 and 1954.33. The low today reached 1954.47. That gap has to be filled doesn't it?
Anyway, the current price is at 1970 area down about 1% on the day. The 50% level will be a level above that would give traders a reason to think that there may be a change in sentiment from bearish to bullish. Get and stay above that level will be better news for equities. PS not only is it the 50% but it was also a floor area until yesterday's break.
ON the downside, the gap is the next target, then traders will be eyeing the August and September lows.
