'We've shifted to a market that's being driven by liquidity and emotion instead of valuation. Once the market drops valuation as a benchmark, it has lost its rudder.'

In summary, it seems likely that support at 3700 and perhaps 3630 will be tested. As long as those hold, one could argue that SP-500 is trading in a very volatile manner within a relatively wide trading range. Resistance at 3930 and support at 3700 to be watched closely. There are signals on both sides and some oversold conditions are building. A breakout of that range in either direction should be significant and would have some serious follow-through.

What now?

In summary, the SP-500 chart has been "wounded" a bit by falling below the January highs and by the fact that there is considerable overhead resistance at 3900-3950. However, that is not a bull market "killer." It could trade between that resistance level and 3630 and remain in a neutral state.

Whether or not a choppy Friday in today's context yields a crash Monday call over the weekend remains to be seen. And, frankly, should not yet be a factor until we at least see the afternoon action.

Observe, don't analyze and see, don't think; the third Friday in February of 2020 and this third Friday in February of 2021. SP-500 chart showing lots of similarities. January high is now support area to watch. For now, the line of least resistance continues to be to the upside. Move up the stops daily and enjoy the ride.

Years ago, the great Sir John Templeton said, “The secret of my success is that I buy when everyone is selling, and I sell when everyone is buying.”