June 15, 2016

S&P Breaks Below Crucial Support As BofAML Warns Of Bearish "Shooting Star"

The S&P 500 tested resistance at the November and May 2015 peaks of 2116-2135 last week but closed near the week’s lows to form a bearish reversal (shooting star) on the weekly candle chart. This pattern, as BofAML's Stphen Suttmeier notes, could provide an overhang, similar to the late April and early November bearish weekly candles, especilaly worrisome as S&P breaks below near-term key resistance at 2085-2077 this morning.


The big weekly supports come in at 2033-2025 and 1950, which are ahead of the 1820-1810 lows.
The near-term key for S&P 500 bulls is holding 2085-2077, and the 50-day moving-average...

Which has been broken this morning...

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