Ukraine Tension testing Market Support

The hawkish comments from the St. Louis Fed President and the tension on the potential conflict in Ukraine (which today eased slightly) are still creating selling pressure in the Markets. If you want to read the detailed analysis, it's available in my Weekend Market Overview (link below).

There wasn't much action today, the S&P 500 is still trying to keep above the support level of 4,400 (red circle in the 39-min chart below). If the selling pressure continues, it's realistic that the S&P breaks the next support level at 4,330 and even gets to test the 4,250 support.

The daily chart of the S&P 500 doesn't give much better news, if you study the latest action (orange arrows in the screenshot below) the 30-day EMA (blue line) is more or less at the 4,560 level, it would look like is also serving as a resistance line. There isn't even enough demand for the S&P to get to the +1 Keltner Channel (KC) band. That only confirms the weakeness in the Market. In previous rallies (green arrows) the S&P was able to get past the +1 KC before a pullback.

The New Highs and New Lows (NH-NL) are still moving towards a more bearish scenario. If some important demand doesn't come during the rest of the week, the supports might not hold the constant bad news hitting the media.