3 Reasons This Is The S&P 500 Level To Watch
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Yesterday, the S&P rejected pretty hard off the 4000-4010 area and it was a run on the market from there on. Now, it’s approaching yet another major support level, which if it were to break, would likely trigger more selling.
We aren’t very far from breaking this level on the S&P and it looks like this level could very well be in play for the final trading day of the week. The 3900 level on SPX has three trend lines all converging on it, so this is a major level my students and I will be watching very closely. A break of this level would make heading back into the jaws of a bear market all but a certainty.
This level is a major level. If it holds, we may just be testing a low, but if it doesn’t, don’t be surprised to see 3800 tested next.
Financial Select Sector SPDR ETF (XLF)
After the collapse of Silicon Valley Bank yesterday, watch out for a little run on the banks. Not that there will be much contagion, but if the levels from above do break, this may supply a little bit of a push to send this sector lower.
This comes with waiting for confirmation of course, but should the market maintain the weakness from yesterday, this sector may be in for lower prices.
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