Originally published by AxiTrader
7 points.
That's all it might take for the S&P 500 - and thus global stock markets - to break wide open and down.
I say that after watching the price action of the benchmark US stocks index over the the course of this week and in particular in the past 3 or 4 hours of trade in New York each of the past two mornings.
After Monday's rally ended with a candlestick that wasn't exactly a gravestone doji but a sign that the gains couldn't be held and was followed by indecision on Tuesday and then aborted rallies the past two days the chart of the S&P 500 looks ominous to me.
Throw in the fact that price has been able to hold above the 61.8% retracement level of the sell-off which ended two Friday's back and I see a setup which presages further weakness for the S&P 500.
A run below 2,697 - just 7 points below this morning's close - could be the start of the move.
But a break of last Friday's low at 2,689 would confirm that stocks were once again in danger.
Here's the chart of the daily price action on the NYSE (as opposed to the CFD which includes out of hours trade).
Source: Investing.com
Have a great day's trading.