Break of S&P 500 Support

Today 06/09/22 the S&P 500 (SPX) broke below important support at 4073.84 which opens the door for additional decline.

The SPX 30 – minute chart courtesy of Trading  View illustrates the action.

This  chart updates the SPX 15 – minute chart  illustrated in the 06/04/22 blog “Three Possible Paths for the S&P 500”.  That chart showed a moderate bearish  Elliott wave count. This  wave count is the most likely scenario because of the briefness  of the rally after the 05/20/22 bottom. The rally lasted only eight  trading days, if a large SPX bear market is developing its likely more rally  time  is  needed before the next major bear drop begins.

The SPX could have additional downside action that holds above the 05/20/22 bottom – then have a second rally at least back to the 06/02/22 peak.

The SPX ended the 06/09/22 session extremely oversold.  Trading  on 06/10/22 is  likely to have an oversold rally bounce before resuming  the decline.

The SPX decline today triggered  two stop orders on a 100% long position of SPX non-leveraged related funds. The profit was 1.08%. 

The next blog will compare the SPX 2022 decline with the SPX 2007 to 2009 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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