Looking for continuation if we break 5100 support
US Credit spreads are widening against most majors and also against HYG suggesting tightening of monetary policy. If this trend continues alongside rate divergence then it may provide a catalyst for technical levels to the downside to be reached. The 61.8 fib of the last move up combined with a CDX HYG of 400 (prior structure) provides for an SP500 at 4600.
Points of interest would include a retest of 5150 and/or a break of 5100 with 4hr confirmation candle to remain within the channel to the downside.
I would not over stay my welcome however as long term corporate buy backs at these levels would quickly support the index regardless of PE value compression.
Points of interest would include a retest of 5150 and/or a break of 5100 with 4hr confirmation candle to remain within the channel to the downside.
I would not over stay my welcome however as long term corporate buy backs at these levels would quickly support the index regardless of PE value compression.