SPX Faces Support Test, VIX Hints at Volatility

SmartReversals
03-26

$S&P 500(.SPX)$ Support in Focus:

Today's candlestick pattern, the Stochastic crossover and the RSI divergence, suggest a potential continuation of the bearish trend tomorrow.

If this occurs, the next support level to watch is $5,208. A breach of this level would send the index down to $5,150, a support matching the weekly 5 moving average (5MA) zone and the favorite support of this rally: 20Daily Moving Average.

$Cboe Volatility Index(VIX)$ : Bounce with a Twist:

The VIX bounced off its 20-week moving average, as mentioned over the weekend. While the daily candle appears bearish on the surface, the closing hours leave room for a possible upward reversal (green VIX) tomorrow.

TNX on the Rise: Growth Stocks Take Note

The TNX (Treasury note yield) also experienced a bounce, potentially signaling further increases tomorrow. This is a factor to consider, as rising yields can negatively impact growth stocks.

The weekly analysis provided a trifecta to watch carefully.

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S&P 3-Day Decline: Hold Stocks or Cash for the Holiday?
S&P has fallen for 3 consecutive days. This Friday is Good Friday and then Easter Festival. --------------- Would You Hold Stocks or Hold Cash During the Holiday? What's your target for S&P 500? 5200, 5500, or 6000?
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