S&P500 selling penetrated 3080 support level.

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S&P500 (SPX) continues to move sideways after the gap down on 11th June. The selling stopped at a test on 14th June and the chart shows a lack of follow-through with a bounce on 15th June. I was expecting the bull market will continue to fill the gap because the chart did not show further selling with high volume.

As SPX traded above 3080 support, a distribution day with high volume occurred on 19th June. Approximately 5 billion shares traded in a single day, the highest amount of shares traded in June and the volumes were also higher than the gap up day on 5th June. This means the selling pressure is persisted below 3150 level or the gap down. Here, SPX continues to move above the short-term support of 3080 levels for two consecutive days and finally penetrated the support with higher volume on 24th June. I reckon the weakness will persist today to test the 3000 support level.

I’m not holding stocks.                                                                       

I’ve decided to sell all my stocks due to the current uncertainties in the major stock markets. I will wait until the confirmation of the bull market before re-enters back to the market.

Author: Gerald Koh