Tuesday morning in our video forecast we warned that cycles were pointing to lower prices today. With price reaching the 2800 level on the SPX (resistance) and stocks trading in extreme overbought conditions with the morning gap higher this pullback has played out almost perfectly today.
We do expect more selling into tomorrow based on cycles and sentiment. Let’s see what the markets do through overnight trading as we could get a new entry signal this week.
See the chart below for a visual: