Stocks hit upper resistance on Friday and rolled over. The decline wasn’t particularly strong however so the door remains open to a breakout to the upside here.
Support (blue line) is key here. If we hold it, the odds of a breakout to the upside greatly improve. But if the blue line break, we could see some truly intense selling down into the 2,800s.
Big picture, I remain convinced a blow off top is coming. A breakout to the upside means stocks rising well above 3,100 and possibly running as high as 3,400.
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Best
Graham Summers
Chief Market Strategist
Phoenix Capital Research