SPX: Danger Zone

FEW CATALYSTS AHEAD, MIND THE DROP

• The technical backdrop of the SPX is shaky on most time frames, with indicators turning downwards.
  With earnings’ season behind us and trade discussions largely over-telegraphed, the great big rebound could be coming to a pause.
  Since December 26, the market is up 16.9% in a straight line: 49 sessions up and 14 sessions down, of which 4 in the past 5 trading days.
  Add spikes in volatility and the dollar, and you find yourself in a danger zone which could see the SPX roll over into the abyss whence it came.
  I highlighted this risk on Feb 26 in a comment about the VIX (Get ready for some action, see below).
  Nasdaq is in a worse predicament and could add fuel to the fire: It has already broken its own resistance to the downside and closed below it yesterday.
  

WHAT TO WATCH FOR
My action plan: Lighten positions to increase cash, keep tight stop-losses on all existing positions, hedge for any downside by going long VXXB.

Levels to watch on the upside
2,940
2,840
2,816
2,750

Key levels to watch to the downside
2,705
2,720
2,680 —> 24% Fib retracement, MA100, MA50
2,580