Today's weakness has pressed S&P 500 (SPX) into the 2020 area for the third time since Oct 20, which qualifies 2020 as a key, near-term support level that must contain further selling pressure to avert downside continuation towards 1950/40 next.
Will it hold?
One look at a couple of medium-term momentum gauges, and we have to view the viability of 2020 with some skepticism.
A break of 2020 does not have to happen today, but the anecdotal evidence is more compelling than not — that, at this time, to refrain from adding any new long-side exposure in equities.
See chart illustrating technical pattern at https://www.mptrader...1512113263.html .
Mike Paulenoff is founder of MPTrader.com, where he provides live intraday analysis and trade alerts covering the equity, commodity, and currency markets.
