Today 06/14/22 the S&P 500 (SPX) moved marginally below the declining daily trendline support and chart support from bottoms made in March 2021. Because the move below support was minor it could be break out fake out. On 06/15/22 the FOMC interest decision could trigger a more decisive move. If the move is down Point & Figure charting and Fibonacci analysis could reveal the next SPX support zone.
The SPX500 – 4 – hour Point & Figure chart courtesy of Trading View illustrates a potential support area.
Trading View index SPX500 – symbol SPX500 is similar to a continuous S&P 500 – Futures chart. Its price is similar to the SPX and is a great index to discover support/resistance outside of SPX trading hours.
If the SPX500 continues lower the next significant support is in low 3500 area. Note the five Point & Figure columns.
The SPX – daily chart shows potential Fibonacci support points
A 50% retracement of the SPX – March 2020 to January 2022 bull market is at 3505.24.
The first phase of the bear market ended at the 02/24/22 bottom was 703.97 points multiplied by the Fibonacci inverse ratio of 1.618 equals 1139.02 points. The largest bear market rally ended on 03/29/22 at 4637.30 subtracting 1139.02 equal 3498.02.
The two Fibonacci coordinates bracket the Point & Figure support and represents potentially powerful support.
Anything could happen after the FOMC interest rate decision on 06/15/22. Its possible the US stock market could start a strong rally or continue its recent decline. It all depends on the reaction to the news.
If stocks start a new rally the next blog will focus on potential upside targets. If the decline continues, time targets for the next bottom will be examined.