A modest correction ahead?

May 29, 2024 at 16:19 PM EDT

Mid-week market update: I pointed out on the weekend that it's not unusual for the S&P 500 to consolidate sideways after reaching its upper Bollinger Band before the market makes its next major directional move. There have been five other similar instances in the last six months. What's a little unusual about the current episode is the length of the consolidation.

Even though the S&P 500 remains in its narrow consolidation range, the odds point to a shallow correction, as the daily stochastic has recycled from overbought to neutral, which is a sell signal. Initial SPY support can be found at 520-525, and secondary support at 505-510, based on volume by price analysis.
The full post can be found here.