TECHNICALS SPX

The SPX sold off this afternoon after some "unhelpful" words from Fed guy Lacker who said policy must be guided by economic outlook and their are still reasons to be concerned about inflation. Not what the markets wanted to hear. RATE CUT is what market participants want.

Anyhow, in addition to the Lacker comments, the SPX ran into overhead resistance at the 200 day SMA above and the 20 day SMA which seems to have capped the recent rally.

My guess is we will get above both on some upcoming good news and then both will act as support. Note also the Bullish Divergence on the SPX as prices made a lower low while MACD made a higher low.

Also, FWIW, the XBD/BKX financial indexes are both way below their respective 50 and 200 day SMA's which may give them plenty of room to run once the running gets going.