Many market participants were increasingly expecting further weakness in the $SPX following the drubbing in tech and small caps. In fact many, myself included, have been calling for a visit to the 200MA at least. The chart certainly would make for a compelling bounce case in that area:
But alas the selling last week left many short and many longs out of inventory. And the chart they were looking for may already be in place, in form of the $NDX:
I’m not suggesting free sailing from here far from it. The 2000 $NDX fractal suggests indeed lower prices sometime in May, but it also calls for a bounce into May 1. .
So did market participants just get played for a fool? The joke may well be on them if the pale rider has anything to say about it this week.
Categories: Daily Market Brief