$SPX Oversold Bounce Holds, $IWM Must Defend 277
Two important signals are emerging across the broader market.
The $SPX is showing resilience after yesterday's weakness, while the $IWM is struggling to break through a key resistance level following a strong rally.
Here's what I'm watching:
$S&P 500(.SPX)$
The weakness flagged in yesterday's daily note correctly anticipated elevated volatility.
Despite the turbulence, the S&P 500 has established a new higher low. The rebound following the Bollinger Band breach is also playing out as it has during previous oversold conditions.
So far, the technical setup remains constructive.
$iShares Russell 2000 ETF(IWM)$
After a strong 3% rally, the price faced rejection at 283, a key level to watch this week.
As long as 277 holds as support, the bounce remains in play. A break below that area would open the door to a retest of the lows, including a move to fill the gap at 274.
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