S&P 500 testing major support trend line - Rolling Over???

The drop from 2pm to around 11pm last night was moderately large at 1.5%. There was a lot of selling in the early afterhours. It was enough to take the S&P all the way down to under the major support trend line. It noodle around there testing for a while and then back up, but another test later in wee hours of the morning. It is clear the large institutions are testing support. It looks like their is not much left but some. This is also verified by the relatively flat trading channel over the last several days compared to previous motive waves. The market made its ATH and seems to be out of energy, mostly because the NASDAQ has done most of the heavy lifting since July and it has reached its top, IMO (multiple stocks with 50-100 or more PE ratios; Telsa is at 956!).

Now that does not mean the retail crowd will not see this as a "buy the dip" opportunity and give the S&P another run at an ATH. However, it really does seem that the Fed news yesterday has put a wet blank on this FOMO party.

Hope this helps and good luck.

Comment:

Jobless claims came in this morning and are worse by almost 200k. That caused another correction back to the trend line. Riding that line right now at 9:12am. Curious to see what happens at the opening bell.