Inauspicious Beginning to 2015

Below is what we discussed earlier this morning.

Since then, the e-SPH has pressed to a new reaction low at 2025.50, and is trading well-BELOW the up trendline off of Dec16.

As highlighted earlier, 2030-2025 is key, near-term support, which must contain the weakness to avert placing the index in a very vulnerable technical position. MJP 12/30/14

The new year of 2015 is in its second trading day, and already has shown lost ground of 54 points, and 2.6% off of its Dec 29 all-time high at 2088.75, which is not a confidence-builder so far.

Truth be told though, the weakness has not (yet) inflicted much, if any, technical damage to the most-recent vertical assault from the Dec 16 low at 1961.50 to the Dec 29 high at 2088.75.

That said, however, the current decline is nearing some important near-term support that resides between 2030 and 2025, which if violated, will break both the mid-Dec support line (2029.25) and the 50% retracement/support plateau of the entire Dec advance (2025.25).

A sustained violation of key, near-term support will leave the index vulnerable to downside continuation towards a full-fledged retest of the Dec (Fed Yellen) low at 1961.50.

At this juncture, the e-SPH must claw its way back above 2053/55 to indicate that a correction off of the high may have ended, rather than the initiation of a deeper, more damaging pullback period. MJP 1/05/15