S&P 500: Short-Term Sell (Update)
S&P 500 Futures, Daily Chart Analysis
The index hit our short-term target today in early trading, as it spiked below the line-in-the-sand support zone between the 2350 and 2355 levels. The rising long-term trend is still intact, but the current bearish momentum could mean that a deeper correction is ahead for the benchmark. The 2320 support and the 2300 level could quickly be reached, if volatility keeps on rising.
Long-term shorts are advised to take some chips of the table while lowering the stop-loss level, as a quick snapback could end the correction if political worries ease. That said, the more likely scenario is that more downside will follow, so holding on to a part of the positions makes sense. A good new stop level could be near 2380.