Test Of S&P 1800 Likely But Not Before A Short-term Consolidation

Thursday’s bearish breakdown signaled a resumption of the April downswing, which would eventually take the S&P back to key support at the important sentiment 1800 level. Although seemingly vulnerable for further short-term loss, the selloff appears to be overextended, so it’s possible that we could see some short-term consolidations prior to a new down-leg.