Stocks took a sharp turn for the worse. As predicted, the break down from the inverse head and shoulders pattern we identified two days ago, was a bearish sign indeed. We have traversed the vacuum zone below 4632 and made a run for 4580. We anticipated this level to hold, but we saw only a brief attempt at a pivot off this level which was quickly sold back down, breaking 4580 and testing the next two levels down. We have several levels in the upper 4500 handle to provide a cushion, and it appears like 4545 may be doing the job for now. If not, the next levels are 4521 and 4504, the latter being the last support level in the 4500 handle. We have seen a small pivot from 4545, and are currently testing 4580 again, peaking up just above this level at the time of this writing. We have encroached upon the vacuum zone between 4580 and 4632 again, but the Kovach OBV has been solidly bearish for most of 2022. If we do see a rally, 4632 is bound to provide resistance.
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