Tuesday’s dump put bulls in limbo yet again. It left a clear downside target at 1183.40 undisturbed, and although that would ordinarily be mildly encouraging, in this case sellers’ seeming timidity can probably be attributed to structural support around 1183.00 from earlier in May. Traders can still try bottom-fishing with ‘camouflage’ if and when the target is more closely approached, but if it’s easily breached, that would be a sign of further weakness to come. The bigger picture suggests that the tedious, grueling chop since late March is just noise and will remain so unless a key midpoint support at 1125 is breached.
