Be cautious from here and watch the next two supports

19 Eyl 2020

This week SPX turned sour quickly. I was encouraged on Tues by the SPX standing back up the 21 EMA, but the past three days made me change my view almost completely. Near team it's getting more bearish. SPX has broken down through its 50SMA and the rectangle range from last week, so the next natural stop is 3283(yellow line), the 78.6% Fibonacci retracement, which is less than 2% away. If that level doesn't hold, the next support is at 3224(red line), which is 10% drawdown + weekly chart 21 EMA, and also YTD breakeven. Expect some support there.

Keep in mind we are in a bull market and the long term chart is still bullish. A correction is healthy and can present buying opportunities when entered at the right level