“The S&P 500 ended yesterday beneath the 1295 support level. Internals yesterday were atrocious with well over 90% of NYSE volume to the downside. However, futures this morning are showing no signs of important downside follow-through and as such yesterday’s slide is looking climactic,” said Tarquin Coe, technical analyst at Investors Intelligence.
The index was trading just below 1295 in afternoon dealings Tuesday.
If the S&P 500 recaptures this level, it would “imply yesterday’s action was a bear-trap break of support,” Coe wrote in a note to subscribers Tuesday. “Consequently, we are giving the market one final lifeline.”
SPDR S&P 500 ETF (NYSEArca: SPY)
