The stock market sell-off sent the S&P 500 below a key level Tuesday, and how it trades next could determine whether the market is close to finding a bottom or more selling is ahead.
The S&P opened sharply lower in a global stock sell off, briefly trading below 2,710, the Oct. 11 low. The S&P 500 fell to 2,708 early Tuesday.
“It could be bullish if it breaks below and then reclaims it and has a strong finish,” said Scott Redler, partner with T3live.com.”But if it gets below 2,710 and things are weak, banks are weak and tech can’t rally, and Apple breaks $216, $215, chances are that would start the next leg lower.”
Apple was trading just below $217 in early trading. The Financial Select Sector SPDR Fund ETF was off 1.3 percent, and the Technology Select Sector SPDR ETF was off 1.9 percent.
When the S&P fell to 2,710 earlier this month, it was 7.8 percent off its September all-time high. Redler said if the decline continues, the next level it would test could be 2,650, the level of its prior breakout in May. Below that is 2,550, the 2018 low.
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