As anticipated, further erosion Tuesday after the significant sell off Monday through retrace support at 6407 to negate the recovery effort from mid-December and the Tuesday break below a further retrace at 6279 now sets a bear theme.
Short-term Outlook - Downside Risks:
- We now see a more negative tone with the bearish threat to 6187 and back to the 6073.5/71 lows.
- Below here targets 6000.0 and just below, the 2014 low at 5994.5.
Momentum: The 8-day RSI, short-term momentum is falling and has scope to go still lower this week.
What Changes This? Above 6390.5 eases bear risks; through 6559 signals a neutral tone, only shifting positive above 6615.
- We see a downside bias for 6209.5, maybe to 6187.
- But above 6328 opens risk up to 6390.5.
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