The S&P 500 just made marginal new lows for this correction.
Returning to out 30-minute look at the SPY, you can see the ups and downs of the past few weeks of price action; The inverse head and shoulders bottom led to a decent rally early last week, which gave way to the megaphone/broadening channel we discussed last Thursday. Obviously, that megaphone resolved sharply lower on this timeframe, which we why we find ourselves at marginal new lows.
The issue now is whether this move represent another shakeout before we bounce again within a broader range, or instead are on the cusp of a fresh leg lower. In other words, there remains considerable short-term risk in either direction. The sector rotation thesis continues to play out, albeit with volatility indicative of the correction.
All eyes are on the low-1420’s on the S&P, as well as the 3,000 level on the Nasdaq.