Where Does the S&P 500 ($SPX) Go From Here?

Looking at my go-to chart of the S&P 500, we can see that the index suffered an outside reversal day yesterday. While some technical analysts (Gartman!) will be all over this, it came on low volume, so don't read too much into it.


(Updated chart)

This puts the S&P 500 squarely back into the "danger zone". We could see a dip to support around 2095, but it could dip to test deeper support around 2060-2070 as well.

One thing to keep in mind: The Fed will release its FOMC statement at 2:00 p.m. ET on Wednesday. The market usually sells off into those statements. So, that's more grease for a downside move (at least until Wednesday at 2).  I'll remind you that while the market usually sells off into the meeting, it then usually rallies after the announcement.

You may be wondering what I think about precious metals -- and, yes, I'm so glad that $10 Trigger Alert subscribers recently entered Silver Standard Resources (SSRI), and that Oxford Resource Explorer subscribers have been loading up on precious metal stocks. But there is a lot to talk about there. I'll try to put that in another post.