The U.S. market is in a Downtrend. The S&P 500 and Nasdaq gapped down to year-to-date lows this week in heavy volume killing the fourth follow-through day (FTD) this year. The seven bear markets since 1971 had a median of six failed FTDs. The next level of support on the S&P 500 is ~3,549, while support on the Nasdaq is ~10,519 before ~10,200. Near-term resistance remains the falling 10-DMA (S&P 500: 3,839; Nasdaq: 11,200).
Symbol: COM7.TH
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Won Global View
The U.S. market has been downgraded to a Downtrend. The S&P 500 and Nasdaq closed at new year-to-date lows after gapping down and undercutting May lows (S&P 500: 3,810; Nasdaq: 11,035). Indices remain vulnerable and likely to chop around with weak support at 3,662 on the S&P 500 and 10,519 on the Nasdaq.
O’Neil Consumer/Retail Weekly
Consumer Cyclical (XLY): The index is deteriorating below its key support levels, as the inflation levels remain elevated.
Investors are sharply withdrawing money from the sector as discretionary spending power is expected to be weak. The
next support is ~5% at $130 levels.
