Today the market is closed but we know exactly what will happen based on other markets.
We have the futures market operating today and is negative.
We also have Bitcoin (the Cryptocurrency market) going red.
When the SPX opens up tomorrow, chances are big we will see the same.
The technicals are bearish but, we still are within a higher low compared to two weeks before, while prices are still trading above EMA50 weekly.
The critical support level is set around ~4200. If this level fails ,the bearish momentum can grow strong and a flash crash take place.
If this level holds, there can be a bounce to test resistance once more... This is the less likely scenario but if it happens we will have to look at the chart again, adapt and update.
Namaste.
P.S. Covid restrictions have been removed in my country after two years... Many people are fighting after many vaccines and being infected twice with the flu... They say they want to keep the masks because 3-4 vaccines and twice infected isn't protection enough... On the other hand, the rest of the country is celebrating, happiness all across.
Covid restrictions are being removed in UK as well and many other countries, like Sweden, toned down this thing long ago.
By mid this year we will still have Covid propaganda but the marketing (fear), extortion and the rest will be gone.
I am bearish. I think next four weeks will put the market to the test.
mjcpaull
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3.5% down to break 4200 - well within reasonable expectation but probably over two trading sessions. Euro-volatility is up substantially / puts getting expensive ....