US stocks have had a nice multi-year run. The FED’s QE efforts have held interest rates down for an extended period. These lower interest rates have contributed to the rise in US equity prices.  The European Central Bank, The ECB, is now implementing their version of QE which has caused the euro currency  to drop and will in time make the European companies more competitive as they restructure their balance sheets with cheaper debt. So, the international money flows will quite naturally move in that direction.

We had produced the short entry levels that would be likely to signal a new move down in the S&P 500 index. They have been met.

S&P 500_

Monthly – Still in an uptrend. Trade pressures are up. Volume is bullish. Next target up is 2191.

Weekly – Also remaining in an uptrend, but the volume has turned neural and showing some distribution. A close below 2048 would signal a new move down.

Daily – Trade pressures are down. Volume is bearish. The trade is short from the 2089 entry price. The 2044 target has been met with the March 10th drop in price below the 80 day Moving average and is now acting as support.  The next target down is 1999 and the 200 day moving average at 1989.  This 200 day moving average will be a significant support level.  If it fails, then the October lows are the most likely levels to target on the down side.

However, until price closes below the 1969 pivot low, the market is still in the long trade in the December cycle. Need a close above 2067 to signal a resumption of this long trade.