S&P 500 down trend acceleration points to still further bear pressures
· We have remained bearish into mid-month and stated in recent client reports that “the downside threat through 1863.75 is to 1843.75, 1839.25, 1828.75 and 1826.0 (the 61.8% retrace of the rally for 2014)”.
· The plunge through these supports sets a still more bearish threat for the 2nd half of the month, with downside risk now to the April spike low at 1788.0 and the 78.6% retrace of the 2014 rally, 1774.0.
· For Thursday (maybe this week), we see bounce risk from bearish fatigue, to aim again for 1860/65, maybe 1873.5 (which we would look to try to cap).
WHAT CHANGES THIS?
· Above 1873.5 eases bear risks; through 1892.75 signals a neutral tone and 1906.0 switches to bullish.
See full report with levels & latest screencast here: http://members.marketchartist.com/Daily/sp500.pdf
Daily S&P 500 Future Adjusted Continuation Chart
Weekly S&P 500 Future Adjusted Continuation Chart