Fifty-day MAs offer little support as indices seek swing lows
Monday's selling left no doubt as to who's in control of markets. The real disappointment was how little the 50-day MA played as support given how long ago it was last tested. Instead, we are are left looking at alternative support levels for buyers to step in. The S&P moved to a net bearish technical picture after months of been net bullish. It's unclear where support may come in so I have included Fibonacci retracements as a guide. Interestingly, today's narrow range day occurred at the 61.8% retracement line, so we may see some bounce (likely, not much) tomorrow. The 38.2% zone is also near a January peak (and successful support test in February), so if there is no bounce tomorrow, then the 38.2% zone is likely next.