Getting The Test of 2050 On The S&P 500 Is Good

I think of the S&P 500 in 50 point increments as I concern myself with levels. So on April 19th support went from 2050 to 2100. It lasted two days. Before 2050 became support again.

As of this morning, we got the test of 2050 with a low of 2049.32. So if the S&P 500 continues to head below 2050 then support become 2000.

Last Friday, the S&P 500 wasted an opportunity to  test 2050. The low that day was 2052.28. I commented to several institutional clients that 2050 had to be challenged before this was complete.

My oversold indicator is now at 28.92. Officially, we are oversold. A move back above 30 is a buy signal.

So the good news is we are getting there, now we just need to be patient on the nibble to add to the long side. More on this as it unfolds.