Resistance

We talked a lot late in the summer and last fall when the market first took a tumble about all of this overhanging resistance.  By that we mean all of the investors that have bought stocks or indices higher and are now trapped longs.  That resistance barrier {shown in yellow in the chart above} is now even greater as the updated chart that I'm showing you of the S&P 500 only goes back to April of last year.  If I could have extended this out you would see this resistance band extends back to the fall of 2014.  Probability suggests that's going to be a tough barrier for stocks to crack in the short-term.  

Markets are very oversold now so probability suggests some sort of bounce at some point.

Charts are from FINVIZ.com.

*Long ETFs related to the S&P 500 in client and personal accounts although positions can change at any time.