Signals from weekly momentum indicators imply more downside action for the S&P 500 (SPX).
The weekly SPX chart courtesy of Trading View shows the long – term action.
Weekly Stochastic has a bearish line cross and the lower line has entered the neutral zone.
RSI has moved below its moving average line and has also entered the neutral zone.
On 07/24/24 weekly MACD had a bearish line cross.
Today 07/25/24 the SPX moved below a Fibonacci .382 retracement of the 04/19/24 to 07/16/24 rally. Additionally, the SPX moved below the long – term rising trendline connecting the October 2023 and April 2024 bottoms.
In a few trading days the SPX could reach 5,230 – a Fibonacci .618 retracement of the April to July rally.
Stochastic is the most sensitive of the momentum oscillators. As of 07/25/24 it is far from the oversold zone which begins at 20.00. This implies the SPX could continue to decline for at least two or three weeks.
Important support is the 04/19/24 bottom at 4,953.56.
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