S&P500 fail to shine on Friday; Closed below MA5; Points to another leg down to 420/416; Weekly Chart also shows some pullback to go before bounce!

Asphen
2023-09-30

Basis

Basis : MA50 on a weekly chart is often a trend indicator one uses to easily see if we are bullish or bearish. 

Basis : Price action above MA50 ==> bullish (RSI > 50)

Basis : Price action below MA50 ==> bearish (RSI < 50)


Weekly Chart

- Still within Uptrend channel since Oct 2022; Past week candle actually showed a good support off the channel

- We are coming up to a key support level/range of 420/416

- MA50 is coming up to support at that range too (confluence)

- The larger bear flag zig-zag (from 3 Jan 2022) does point to a full play out to 320 ==> Don't panic. Observe price action. Plenty of support levels to break to get there)


As they say, Bears jump out the window down; Bulls take the stairs, and that first major step is coming up at 416/420! Look out!


I'm neutral to the market trend at the moment. I will go bearish when 416 breaks.

S&P500 Weekly Chart - 30 Sept 2023

@TigerStars  @macroB  @melson  @CaptainTiger  @Deposit  @LMSunshine  

$S&P 500(.SPX)$ 

$SPY(SPY)$ 

More dip after SPX falls below 4300?
S&P 500 closed at 4273.53, below the key support level of 4300; Nasdaq fell below 13100 yesterday. With two key indices falling below the support level, market begins to speculate for more declines. -------- Will the indices rebound? Or more declines ahead?
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Comments

  • delusion梦碎
    2023-09-30
    delusion梦碎

    ⚡️If we shutdown, we may dip say 2-3%. But what happens during shutdown? You'd be surprised market actually RECOVERS during shutdown. During the shutdown in 2018-2019, the market recovered the ENTIRE DIP, whole +15%.

  • ColinThorndike
    2023-09-30
    ColinThorndike

    I'd wait for a break below 356 to reshort or retest of 360.. not swinging anything. Enjoy your weekend ✌

  • BadgeLeh
    2023-09-30
    BadgeLeh
    Bro Asphen, how abt Dow? Is the move similar to SPY?
  • HardyJenny
    2023-09-30
    HardyJenny

    Well I think SPY might be able to pull off a repeat motion that replicates the movement of the last month. I think fear is at extremes today the shutdown was confirmed.

  • Aqa
    2023-09-30
    Aqa
    Lsc! 👍🏻
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