Overtime

Breaking down the S&P 500

Good morning,

This week we’re turning over the S&P 500 every which way we can. I try to keep the Monday Morning Playbook focused, but the fact is there is a lot that goes into my overall views and there is a lot that can go into the view of just this benchmark index.

Whether you use mostly passive products but adjust exposure, or are highly active with ETFs and stocks and trying to outperform the index, in my experience (and especially in a correction) everybody wants to know what will happen to the S&P 500.

So, this week we’ll review:

• The S&P 500 on multiple time frames

• Objective trends

• Index breadth

• and more

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The S&P 500 on multiple time frames

Daily

Trendlines are usually better drawn with a crayon vs. a fine-point pin, so I think it is fair to say the S&P 500 is still holding first support here, especially after Monday’s rebound back above 4325. First resistance would be the gap left near 4401, while support below Monday’s low is the range from 4172 to 4227. The upward-sloping 200-day moving average should help reinforce that range, but momentum measures are currently not supportive. Neither RSI-14 nor the daily MACD suggests this is just a retest of the August lows.

Weekly