The manic, oversold bounce cooled in the opening hour of today’s session, giving way to a selloff that threatens to wash away Monday’s powerful gains.
Despite this, SPX is on a theoretical buy signal that triggered earlier this morning at 5053.75. The stop-loss is at 4949.00, but we’ll paper-trade this one simply to observe whether bulls may have lost their mojo. If the stop is hit, look for a test of Monday’s lows. Keep in mind that if it is breached, SPX still has theoretical support at 4820, a target I drum-rolled Sunday night that was missed by just 13 points at Monday’s low. @everyone
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