Equities slipped again on Thursday and are in danger of falling further. While the S&P 500 was able to claw its way upward from a freshly set low, the index is still below what is now a key resistance target. The 4,100 level was confirmed as resistance this week and will be a major hurdle for the index going forward. the longer it takes for the market to get back above that level, the harder it will be to cross above it and we are not hopeful of a rebound next week.

Next week will be a critical time for the broad market. The technical picture is lending strength to the argument "sell in May and go away" and there are no catalysts for buying on the horizon. The catalyst that is on the horizon is the PCE Price index and we do not expect it to be a pleasing figure. If the market falls to a new low, a low below 3,860, the S&P 500 is likely to fall another 100 points or more before finding the next level of price support.