SPX Faces Support Test, VIX Hints at Volatility
$S&P 500(.SPX)$ 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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