S&P 500 – Downside Target Zone

Today’s – 07/19/21 sharp decline broke below the micro-crash bottom made on 07/08/21 and could be the kickoff of a larger developing drop.  Momentum evidence supports this theory. Daily RSI is 43%, the oversold zone begins at 30%.  Daily MACD had a bearish line crossover.

The daily S&P 500 (SPX) chart courtesy of Trading View illustrates a zone of potential support.

A .236 Fibonacci retrace of the March 2020 to July 2021 bull move is at SPX 3941. 

A .382 Fibonacci retrace of the September 2020 correction to July 2021 is at SPX 3873.

Note that these Fibonacci coordinates are in the area of the  03/17/21 to 03/25/21 minor correction.

The largest correction of the entire SPX March 2020 to July 2021 bull market lasted from 09/02/20 to 09/25/20 – 15 trading days.  Adding 15 trading days to the  SPX 07/14/21 peak targets 08/05/21 as a possible bottom date.

Traders are  100% short non – leveraged SPX related funds from the open of the 07/12/21 SPX session at 4372. Continue holding short.   

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

2 thoughts on “S&P 500 – Downside Target Zone

  1. Mark,

    Please update yoursite when possible

    SPX has risen over 120 points from 4233 Low Monday 7/19/21.
    with a 100 % Short recommendation from SPX 4372

    Thank you,

    Joe Soja

    Like

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