Support Broken – 12/22/22

Today, 12/22/22 all three main U.S stock indices broke below an important bottom made on 12/20/22.  In the first half of todays trading session the bears were totally in control, smashing prices  relentlessly lower.  It appeared the trend could be down the entire session, with the low of the day coming near or at the session close.

Then in mid – session the bulls started a powerful counterattack pushing prices up just as relentlessly as  the down trend.

The 30-minute S&P 500 (SPX) chart courtesy of Trading View illustrates an important resistance area.

A Fibonacci .236 retracement of the 12/13/22 to 12/22/21 decline is at 3,843.90.

A Fibonacci .618 retracement of the 12/21/22 to 12/22/22 decline is at 3,841.94.

The closeness of two or more Fibonacci coordinates is significant to their potential strength. These two points are very close and represent what could be powerful resistance.  If the SPX can move significantly above these points, perhaps at 3,850, then there’s a high  probability of reaching  the 12/21/22 high at 3,889.82.

If the SPX moves above 3,889.82 it will invalidate one of the bearish Elliott wave counts. If this occurs there will be a blog to explain  its significance.  

One other factor could be important to near term stock market action.

There’s a New moon on 12/23/22.  Occasionally markets can  turn on or near New/Full moons.  I use plus or minus two trading days from New/Full moons as  leeway.  U.S stocks trended down into the lunar time cycle and implies a bottom could be forming.     

In the very short-term the bulls are in control, what they do on 12/23/22 could determine the direction of U.S stocks for the next two to three weeks.   

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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