The key support level band is shown. More or less 3900 on the SPX and the corresponding level of 39,000 on the Wilshire 5000. A solid break of this level is very bearish for the market and would confirm that the pattern since the mid October low was indeed an overall 3 wave corrective pattern.
The move from the recent 4034 SPX high to today’s low looks more impulsive down rather than corrective which implies the trend has reversed and we are heading lower. Again, the market (and everyone else) knows very well that 3900 is key support.
