Dramatic Decline – Part – Two

Today 08/29/22 the S&P 500 (SPX) broke below the .382 Fibonacci support level; also, bullish momentum divergence were eliminated.  This opens the door for lower prices.

The daily SPX chart courtesy of Trading View illustrates  the next near – term support levels.

The Fibonacci .50  level is usually a weak support/resistance level.  The Fibonacci .618 level is usually a stronger price magnet.  In this case the .618 retracement of the SPX 06/17/22 to 08/16/22 rally is  at  3901.00 which is close to chart support at 3910.74. This is  the most likely near-term support level.

A  move above SPX 4203.04 could open the door for a move above the SPX 08/16/22 high.

The calendar could soon be a very important factor.  The seasonal bearish time zone for stocks begins in early September.  After the US Labor day holiday on 09/05/22 stocks could begin another sharp decline.  

Watch the calendar. 


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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