Stocks are approaching an important inflection point at SPX 5000.

Not only is it an important round number, but SPX 5000 is the bottom of the rising white channel and the target of the H&S Pattern we identified last week.

continued for members…

If SPX doesn’t bounce here after a 5% slide, the next strong support is the former high at 4818, followed by the SMA200 at 4671.  Note that it is far from oversold at this point. But, tomorrow is OPEX, so it would be unusual to not get a bounce if SPX in fact does reach 5000.

Note also that VIX has not popped back above the red TL from Mar 2023, which would be quite likely if not necessary if SPX is to reach those lower targets.

It would also help stocks move lower if EURUSD would reverse this latest little bounce and USDJPY were to pause its rise.

CL broke down a bit, but quickly bounced off its SMA50.

While RB is trading below its SMA20 for the first time in a long while.

Regardless, the 10Y is slightly higher.

continuing…