In my last market update video I talked about the current support and resistance levels in the S&P 500. This may all sound like jibberish if you haven't been following my blog for awhile, but I think you'll find the video to help clear that up. In a nutshell, since the markets highs for 2012 we have been falling in a pretty sequential pattern to new "support" lows. Each time support is breached it sets up for a pretty clear path to the next support low. It's almost uncanny how this has worked out so far.
If the S&P 500 can't stay above 1,310 (it's now at 1,312) it looks like a minimum another 3-4% decline is in order. Unfortuantely that would wipe out the stock markets gains for the year - which were once near 13%.
We'll have to see if the market holds here and I'll continue to keep a close eye on these support levels to let blog readers know what to expect. Here's todays video update: