Dramatic Move Down – 01/20/26

There was a New Moon on 01/18/26. Sometimes markets can turn on New/Full Moons plus or minus two trading days.  Usually, one of the main U.S. stock indices; S&P 500, Nasdaq Composite or Dow Jones Industrial Average register lunar turn signals.   In this case the Russell 2000 – small cap index made a post April 2025 rally peak on 01/16/26. 

There’s a high probability an effective lunar turn signal has occurred.  If so, S&P 500 (SPX) could be in the early part of a 10 to 20% decline.

The weekly SPX chart courtesy of Trading View illustrates important momentum signals.

Weekly Stochastic had a bearish line cross in the overbought zone above 80.00.

Weekly RSI has crossed below its moving average line.

First support is in the 6,500 area; this could be reached in one or two 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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