From Bespoke Investment Group:
The S&P 500 Financial sector is down just over 12% from its recent intraday high last Friday. And heading into next Monday, the sector is currently sitting at a key inflection point that should help identify which way the sector will trade over the next month or so....On Wednesday they said, re: the S&P 500:
...A key level to watch on the S&P 500 is 875. The previous pullback in April ended when the S&P 500 traded down to the level of the March peak. If this decline is anything like the last, we would expect to see support at the peak of the April rally which was 875. If that level fails to hold, the next area of support comes into play at the 50-day moving average (~825).
So here we have both the group that had led the rally and the broad index each at critical junctures. The first couple days next week should be interesting. Lets's try this on for size:
A fakeout move past Tuesday's 908.35 close to fill that gap followed by a fast 35 point drop followed by...who knows. Stay tuned.
