Tuesday’s downdraft crushed the 2342.50 Hidden Pivot support, implying that more weakness is coming. Bulls are unlikely to go down without a nasty fight, however, so expect some wild swings. The gyrations cannot but be tradable, but I would suggest executing your orders using ‘camouflage’ entry signals generated on charts of five-minute degree or less. The selloff was bearishly impulsive on the daily chart, since it exceeded the required internal and external lows without a correction. If the downtrend were to continue on Wednesday, surpassing an ‘external’ low at 2332.00 recorded on February 17, it would increase sellers’ imputed power. ________ UPDATE (Mar 22, 8:38 p.m. EDT): If that was the most energetic bounce bulls can muster, then lower prices are coming. Buyers would have to hit 2382.50, and soon, to turn things around._______ UPDATE (Mar 23, 8:09 p.m.): The will-they-or-won’t-they news on the healthcare front may have lost its power to drive this vehicle significantly higher, so look for the organic weakness that has prevailed in recent weeks to continue. If shorts can keep their cool — by no means a foregone conclusion, they’ll be in good shape. Click here for a fresh chart.
