Sellers left stocks hanging on for dear life at the close, implying the market is unlikely to come roaring back to end the week. A few more days of punishment could lie ahead, but how much more of it are we likely to see. The chart shows two Fibonacci levels that would equate to pullbacks of, respectively, 61.8% and 78.6%, measured against the powerful rally begun from 2760 on May 14. The corresponding levels are 2940, which lies 86 points below; and 2861, which would imply a 166-point plunge. I doubt that this correction — and that’s what I think it is — will exceed the May 14 bottom, but if sellers crush a couple more external lows on Friday (i.e., 2992 and 2903), we may need to reconsider.
ESM20 – June E-Mini S&Ps (Last:3020.50)