Possible Support Zone – Part Two

Today 09/28/21 the broad and deep decline in US stocks provided additional evidence that the next down wave could be  underway.

The daily S&P 500 (SPX) courtesy of Trading View  illustrates the action.

The daily RSI + MA had a bearish crossover following the daily Stochastic bearish crossover on 09/27/21.

A  Fibonacci extension from the 09/23/21 SPX high at 4465.40 targets SPX 4077.18 as the next possible support zone.  Note its in the same general area of the May 2021 minor correction bottoms. 

I suspect that if within the next few weeks,  the SPX continues to decline it could break below its 200 – day Moving Average (MA).  If the SPX can break below the 200 – day MA, it could be the most important clue of a developing bear market.  

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.

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