S&P 500 ignored soft landing supprotive data (JOLTS, manufacturing PMI), and instead sold off following – not on – FOMC minutes even if these contained slowdown of the balance sheet shrinking. Russell 2000 took the key hit, and it was led by regional banks rather than biotech, in a way connected to the XLRE (meaning real estate – commercial and not necessarily single family homes).
Meanwhile the 30 min, 4 hour and daily ES charts are screaming still danger and dust unsettled ahead even if VIX duly retreats (except yesterday, closing above 14) – my first 4,755 support level is slowing the descent, but 4,735 is to act as a magnet, especially considering continued (big) tech weakness and smallcaps not catching their breadth.
S&P 500 and Nasdaq Outlook
(Click on image to enlarge)
Wave goodbye to the 4,755 support slowing the sellers, here comes the 4,735. It‘s been a relatively uneventful day yesterday, marked chiefly by incoming data and minutes which should have worked for the buyers, but didn‘t – and that‘s in itself telling, caution warranting.
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