Low volume SPX decline nearing support

The near-term decline in SPX has now closed in on important support, which should likely provide a possible low to this pullback sometime over the final three days of this short week.

Despite SPX having logged the worst trading day performance-wise in over two months’ time, volume was sub-par.  While many blame the shortened holiday week for this lack of volume spike, one would think that volume would be at least a bit more than average on the worst trading day of the year.

Importantly, prices are now hovering right above the all-important 50% retracement area of the prior low to high range.  Additionally, this week represents a 50% time retracement of the prior low to high swing from late December 2022.  (In other words, from 12/22/22-2/2/23 markets rallied for 42 calendar days. 50% in time will arrive on 2/23/23, this Thursday).  Thus, some short-term price and time confluence is approaching.

checkout-thomas-lee image
checkout-logo image

Become a Member To Access Fundstrat Research

Fundstrat Direct gives individual investors access to Tom Lee's research, previously only available to banks and hedge funds.

Monthly

$199/mo

First Month Free

Join Now

Annual

-15% $2,028/yr

List Price $2,388

Savings: $360/yr

Join Now

Why Join Fundstrat Direct?

Fundstrat Direct helps you invest confidently with the same research banks and hedge funds use to navigate the market.

Daily Strategy Icon

Daily Strategy from Tom Lee & Team

Stay ahead of consensus with daily updates on key developments & catalysts and opportunities ahead.

Real-Time Market Alerts Icon

Real-Time Market Alerts

Analysis on market-moving events and actionable opportunities delivered instantly from us to you.

Curated Stock Lists Icon

Curated Stock Lists

Choose the portfolio that best suits your investment style, preferred asset class, and time horizon.

Monthly Market Update & Top Ideas Webinar Icon

Monthly Market Update & Top Ideas Webinar

Attend engaging webinars with Tom & team featuring our top ideas and near-term market outlook.

Daily Technical Strategy Icon

Daily Technical Strategy

Receive tactical opportunities, actionable signals, and fundamental analysis from our proven research team.

Live Analysis on Your Holdings Icon

Live Analysis on Your Holdings

A monthly webinar featuring live analysis on member-submitted stocks and questions.

Disclosures (show)

Events

Trending tickers in our research