Watch the S&P 500 – Trendline – Part Two

The 06/11/22 blog “Watch the S&P 500 – Trendline” concluded with the following.

“The bears are in control – important points to watch are –  support zone near 3880, the 05/20/22 bottom at 3810.32, and the declining  daily trendline.”

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

Today 06/13/22 the SPX low hit the lower declining  trendline at 3734.30 slightly above chart support made on 03/05/21 at 3730.19.

Daily momentum indicators look like they could go lower.

RSI is at 32% above the oversold border of 30%.

Stochastic slow line – orange is at 22% above the oversold border of 20%.

MACD is the most bearish of the three with a bearish lines cross over.

The SPX – 15-minute chart courtesy of BigCharts.com illustrates  the intraday action.

At the 06/13/22 bottom RSI and MACD had significant bullish divergences.

Slow Stochastic had a bullish lines  crossover.

On 06/15/22 the FOMC  will make  its  next interest rate announcement.  On  06/14/22 the SPX could have a modest rally.  The next big  move  up or down will probably occur after the FOMC announcement at 2:00 PM – ET 6/15/22.

The daily  momentum indicators suggest the SPX could have more downside action.

The 06/14/22 blog will examine the next potential support zone.

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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