The 08/29/22 blog “Dramatic Decline – Part – Two” noted the next most likely support level for the S&P 500 (SPX) was at the Fibonacci .618 retracement of the 06/17/22 to 08/16/22 rally. On 09/01/22 the SPX low was just above the .618 retracement level.
The one – hour SPX chart courtesy of Trading View illustrates the action.
Note that the rising trendline connecting the 06/17/22 bottom with the 0714/22 bottom crosses the .618 retracement level on 09/02/22.
Also, not that at the 09/01/22 bottom the hourly RSI did not have a bullish divergence.
On 09/02/22 the monthly US payroll report is released at 8:30 AM – EDT. For several years this has been a very important economic report and can frequently trigger large US stock market moves.
Reaction of US stocks to the report could determine the market direction for at least the next two – weeks.
A decisive break below the Fibonacci .618 retracement opens the door for a move back down to the 06/17/22 bottom.
If the Fibonacci and trendline support holds there could be a rally back to the 08/16/22 peak.