Sellers continue to pile on as the Retail Index and Banking Index hit a new low for the year.
The major indexes remain just a sell-off away from striking new yearly lows. As key sectors show no sign of reversing courses, we begin to look at areas of technical support to the downside.
Should the S&P take out its low made a couple weeks ago, we see chart congestion around 1035 to 1050 as a possible reversal zone. Beyond that, we’re looking at 950ish, where prior resistance of a year ago’s high becomes a downside target.
We’ve held a Sell Bias for more than a month now.
Bears are notorious for sharp u-turns. Let’s be alert for anything as these lows come into play…