The S&P index has rotated back to the downside, after reaching a new high for the week. The high price reached 4163.1. The current price is trading down at 4136.94 down -9.27 points or -0.22%. The low for the day at 4132.70 tested/ briefly broke the swing highs from last week at 4133.13 and the high price from Wednesday's trade at 4134.37. A break with more momentum would likely turn buyers to sellers.
Overall, the commentary from many analysts is that the S&P index is overbought given expectations of a recession later in the year (if not sooner). The 4200 level was tested back in February (the high price reach 4195.44). Most people think that even if the market squeezes higher, that level would be a limit given earnings expectations and the chance for a recession later in the year.
Of course we do have earnings starting up today and the banks earnings are positive. Nevertheless, traders will be listening for comments on future expectations going forward.
For now move below 4133 with momentum, and we could see this index back down toward the 4081.50 to 4089.50 area as the next key target. The rising 100 hour moving average and a trend line near 4066 is also a level of importance on the downside. The low price from yesterday reached 4069 .84.
