Good morning,
It’s every technician’s most hated question, “Where’s support?”
Whenever there’s a market correction, everybody wants to know where it is. The cruel irony is that what they should be worried about is resistance.
Last week, I laid out two potential scenarios, and unfortunately, we got scenario one.
The S&P 500 broke out higher to start last week but didn’t have strong breadth and ran right into the resistance zone at 5800.
The index fell 3.4% the final three days of last week, undercutting the prior week’s low and posting its lowest weekly close since September.
All in all, not good.
