So much for the potential double bottom in the S&P 500, but there’s another level

Technical Analysis

The S&P 500 is down 80 points, or 2.1% and today’s close will mark a seventh consecutive week of declines. That’s a rare feat and it doesn’t bode well.

I had some optimism yesterday that the Target-rout might mark a tradable bottom and it did to some extent but the inability to rally for more than a day is dire.

There was some hope for a technical double bottom but, alas, it wasn’t to be. The S&P 500 index is now down 20% from the high and the Nasdaq more than 30%.

One other line of support is being tested right now. 3815 is the 38.2% retracement of the rally from the pandemic low. Maybe that’s a place for the bulls to make a stand?

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