S&P 500 testing big support level
I've highlighted the cluster of support around 2020 a few times over the past two weeks. It includes the November lows, the Oct 21 low and the 38.2% retracement of the Sept/Oct rally.
The market is getting jittery about the Fed but for me the real problem (or maybe it's a symptom) is the volatility over the past two weeks.
I was coving for Eamonn yesterday and wrote a post that addresses the worries in markets at the moment.
"The underlying them in the market at the moment is volatility. Not the kind of 'volatility' the punters on CNBC complain about whenever there is a hiccup in global stock markets, but the kind of back-and-forth outsized moves that don't make much sense."
That kind of volatility, even when it's not tied to a direction, almost always resolves lower in the stock market. That's because no one enjoys it. "Volatility breeds contempt" is the saying and we're seeing it manifest today.
