The downward trend for the S&P is picking up speed. We'd like to emphasize the significance of the resistance line we mentioned a few weeks ago. We cautioned about the combination of this resistance line and the divergence of the daily RSI, signalling potential trouble for the market. As anticipated, the market has indeed sold off.
Initial support rests at the 2022 high of 4809. However, we believe the downward movement is already underway. It would not be surprising to see the market sell-off to the 50% retracement level of the October 2023 low to the recent high, around 4689, especially considering its alignment with the 200-day moving average at 4674.
In the near term, any upward movements are likely to encounter resistance. The 55-day moving average, currently at 5103, will pose initial resistance, keeping the market under pressure below this level.
Initial support rests at the 2022 high of 4809. However, we believe the downward movement is already underway. It would not be surprising to see the market sell-off to the 50% retracement level of the October 2023 low to the recent high, around 4689, especially considering its alignment with the 200-day moving average at 4674.
In the near term, any upward movements are likely to encounter resistance. The 55-day moving average, currently at 5103, will pose initial resistance, keeping the market under pressure below this level.
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