S&P500 to push lower towards 1620/30
The S&P500 fell off a cliff yesterday and volatility spiked as investors hit the panic button sending the S&P 500 into a tail spin, with the US benchmark index losing about 1.2% on speculations that the US economy is not doing well enough for the Fed to proceed to tapering. The market broke through the key support level at 1670 to dive into the consolidation area that extends all the way down to 1626. At 1661 at the time of writing, the market is pausing for a breath. With yesterday’s candle having closed at its very bottom, we expect to see further downside potential towards August’s lows at 1620/30. In the alternative scenario, we would have to see a retrace back to 1690 in order to reconsider our outlook.
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