Technical analyst Bob Lang said markets are in a textbook downtrend and the S&P 500 isn't capturing what's really happening behind the scenes. Watch the video above for a sneak peek of what he told members of theJ.D. DURKIN: Bob, you noted that sellers have been winning out in what's normally a seasonally strong period for the market.
The bulls, obviously, were very hopeful that the calendar was going to be working in their favor this time around. And as we often enjoy a bullish seasonality this time of year, it just hasn't happened so far. But, of course, things can change. We have a new month coming up. J.D. DURKIN: I would never call you the Grinch, of all the things, Bob. So let's talk about this S&P level here because we're right now about 4140 and change. We haven't really seen this level since May. A lot of technicians have been following this support level at 4200, 4220, wondering if we would break below that. But like you said, we're kind of in a little bit of a new ball game in the last few trading sessions.
Now, to the downside, again, I mentioned that 4100 level, which should see a little bit of support there. And if we do get to an extreme oversold reading, we should probably get a really nice bounce off that 4100 level. But I'm not sure if that's going to be an area where investors and traders are just going to use rallies to go ahead and sell. That's been pretty much the MO of investors and traders since the beginning part of August. Any rallies has been a selling opportunity.
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