Will S&P 500 reclaim key resistance levels? An analysis of market realities

S&P 500 internal breadth deterioration signs didn‘t lie, and the index took a dive – till the dip got of course bought. The sectoral view was though nothing to write home about.

Remember the key points made in yesterday‘s extended video. Still, I looked for a reprieve in sentiment, leaning risk-on into non-farm payrolls. Markets seemed fearing a strong figure, yet the heavily loaded boat tilted the other way in the aftermath of not really finest NFPs.

Initial relief over the Fed maybe getting second thought about hiking (in July), is giving way to questioning the realities of why it wouldn‘t hike (maybe perhaps even pivot, in market‘s mind). Then, the gut level reaction to rally as liquidity won‘t be getting that bad in the very short-term, is likely to win – especially in real assets as the same mechanic would take more effort to kick in in the S&P 500.

In favor of an extended introduction to today‘s analysis, I‘ll focus on individual charts, Twitter commentary, and of course another video to top off it off.

Have a great weekend in advance!

Let‘s move right into the charts (all courtesy of www.stockcharts.com) – today‘s full scale article contains 4 of them.

S&P 500 and Nasdaq outlook

4,460s are the nearest support turned resistance to reconquer, and a good battle seems at hand later today. In order to achieve that, 4,432 level can‘t be broken or thoroughly tested, which opens the way to 4,415 last line of defence.

NYHL were indeed what I correctly trusted – the warning signs were there, and now it‘s up to the sectors given in the preceding chart caption, to do their job as much as Russell 2000.