S&P 500 downside correction bias
· As we stated in our last report to our clients that “a break above the 2000 psychological/ option barrier and subsequent setback points to a potential defensive, digestion theme through midweek” and the modest Wednesday setback reinforces this view.
· We still see risk for a correction back to 1992.25, maybe to 1981.5/80.75.
· However, should these supports hold into week and month-end, we would see upside pressures resuming to aim for 2012.5 and 2020 and 2027.25 targets into early September.
WHAT CHANGES THIS?
· Below 1980.75 eases bull risks; through 1969.0 signals a neutral tone, only shifting negative below 1937.25.
See full report with levels & latest screencast here: http://members.marketchartist.com/Daily/sp500.pdf
2 Hour S&P 500 E-mini September Future Chart