The S&P 500 (SPX) broke below chart support at 4,216.45 and the SPX – 200 – day moving average (MA). So far no panic. If the decline continues it could be a steady drop until 11/01/23.
The daily SPX chart courtesy of Trading View illustrates the action.
The bearish factor on the chart is the failed rally above the 200 – day MA. If the bulls held above the line it would imply the move below was a fake out.
The bullish factor is the RSI bullish divergence today 10/25/23 vs. the 10/03/23 bottom. If the decline continues it could erase the divergence – a bearish message.
Markets tend to trend into major news events. In this case it’s the U.S. FOMC – short – term interest rate decision on 11/01/23.
A bearish market interpretation of the 11/01/23 news could trigger a selling panic.
A bullish interpretation could launch a kickoff rally.
Four Dimension Trading 