Significant Lows
S&Ps took out the December lows at 1115.80. Historically, this is bearish for the market. Earlier, the market edged lower through the low of the day at 1118.2 and then made a new low for the year at 1116.50 — before finally breaking through and taking out the December low. On the downside, we could see a targeting of the psychologically important 1100 level.
Nasdaq traded to a new session low at 1542 at the bottom of our support area and below yesterday’s low. Sellers were in force as the market hit stops below 1545. Earlier, we saw a choppy trade between 1546 and 1560.
Overall, the mood of this market is negative, and the market has dried up on the buy side.