Outlook extremely negative below $SPX 1600

Posted on June 20, 2013 - 10:37am

ryanbrennan's blog

By Lawrence G. McMillan

After the FOMC meeting announcement Wednesday, the stock market fell sharply. All those people who had bought earlier – on Monday and Tuesday – had apparently become profit-takers by late Wednesday. Even though $SPX probed slightly above 1650 in the last two days, this was not an upside breakout. In fact, it just pushed the upper resistance area slightly higher, but $SPX still remains within the general 1600-1650 trading range. It continues to move in a volatile fashion within that range...

...$SPX is currently testing the 1600 area. If that level fails, it would have immediate and serious negative effects. Otherwise, continue to expect volatile news from one end of the trading range to the other.

This commentary was excerpted from this morning's edition of The Daily Strategist newsletter. Sign up for a free trial today to receive Larry's full commentary twice daily.

ryanbrennan's blog

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