Mark Newton, CMT, of Newton Advisors, penned a brief See It Market piece Thursday in which he discussed a potential temporary support level of 2600 for the still-plunging S&P 500 index.
“While an uptick in fear could hold prices near 2600-22 this go-around, the structure looks increasingly like one that will breakdown eventually given the deep retests,” Newton said, referring to the patterns in the futures chart above.
“The structure has definitely begun to get worse in the last two sessions … We’ll need to see a rally back up ABOVE 2764 to have any sort of confidence that lows are in, which at this point, is a long ways off.”
Read the full piece here: S&P 500 Trading Update: 2600 On Radar Again.