S&P’s Waning Momentum Forewarned Lower Stocks Price

daily chart of the S&P has shown signs that upside momentum is waning as the index tested key price level. While there is a high probability that the late-week selloff will momentum but a close below S&P’s 2800 is needed before there is any real prospect of a change in the short-term upward trend pressure. For now, 2800 is the line in the sand. A close below that level would see a massive pickup in volatility

S&P Broke Key Support but Follow-through is the Key

S&P broke several key supports Monday, signify a bearish breakout. However, intraday oversold conditions returned with Monday’s selloff, supporting a short-term rebound. Over the next few days, it will be important to monitor the retreat and rebound behaviors to determine whether breakouts are decisive

S&P Established Near-term Low

S&P tested and respected support at the trend channel moving average. Thursday’s bullish reversal doji candlestick pattern suggested that an important near-term low has been established. So it wouldn’t surprise us to see at least an attempt to rally over the next couple of days

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