Midday Update: 2023-03-07
Equity indices pushing down from a lower high
The S&P 500 and other indices started selling off on the hawkish tone from Powell’s testimony this morning. That is consistent with the forecast for a lower high this week and the start of a strong impulse lower. I’m penciling in the morning drop as working on the first impulse down from the high from yesterday. Areas to watch for today at 3995, the gap fill around 3982, and 3972. I lean toward the latter two targets. Then allow for a minor bounce perhaps tomorrow. I think we could be moving into a period of selling retraces but we will see.
Anything confirming this view? Crude on track as it falls away from a lower high to the high on January 23rd. CL has minor supports at 77.60 and 76.50 but should only act a speed bumps on the way down.
Really nice track. Crude oil always squeeze late Bulls/Bears but nice Job.