Technicals Are Taking Over Now That 6,550 support for the S&P 500 Was Violated

Bitcoin’s crash, AI-chip whiplash, and tightening credit are now singing the same tune: the risk-on party is over.

Key Takeaways

• No Buy-the-Dip in Sight as S&P Breaks Key Resistance Line: The S&P 500 just took out Walter Murphy’s support line of 6,550. Yesterday’s decline locked in the rally off the April lows as a completed pattern. A garden-variety retracement of 50% would place the S&P 500 back at the level that it started the year (around 5,900) — more than 10% lower from where we are currently. This is probably not a dip you should be buying.