SPX – market update
Today’s price action confirms the downside bias as we are even below the 20 day MA as I write ( which is not so important in my model). NDX also turned neutral but more important is that the banks get under pressure as they were the star sector on the upside they need to give back more than other sectors. We had the fools rushin’ in factor going but that will be the factor the next 2 weeks for the bigger losses in banks. 825/30 remains the mandatory target matching a 38.2 % retracement and 800 would be the extreme with a 50% retracement level. The NDX should find a low around 1300 but we can expect an ABC type of correction and we are in wave A down. Around Memorial day is a New Moon again with some positive spin which should trigger a brief wave B up ( we discuss that next week).