SPX Further Downside Incoming (1D)
Diupdate
SPX Daily
Price Chart
After the recent bounce of the level of resistance (Red Box) the SPX snapped it's first small level of resistance (Teal Dotted) and has continued lower. Price has also closed below the 50-day EMA while the 12-day and 26-day have recently crossed and the 50-day flattens out. The next level of support (First Green Box) should come into play within the next several days, unless we get a big sell-off Friday and hit it today, but this is the first area we expect to see a bounce. Also notable is the minor trend line (Yellow Dotted) that has been broken which should lead price action to eventually come in contact with it's major trend line (Yellow Solid) again.
Relative Strength
Not a lot to show here, however there have been two significant moves. First is the rejection of the 50 level (Aqua Circle) and the second is the break below (Aqua Highlighter) the major trend line (Yellow Solid). Both of these moves fortify the recent price action and indicate further weakness in trend.
On Balance Volume
OBV broke out of it's downward trend back in May (Yellow Solid) and started trading in an upward channel after. There hasn't been a reversal formation, but there is a small breakout forming (Aqua Highlighter) that coincides with recent price action and RSI movement. More evidence of an upcoming bounce is seen as a level of resistance is also being approached (Red Solid)
TLDR;
Dang man, talkin' bout no time man, dang ol' markets bleedin' man, come on up or dang ol' down man. Uh.. yea.. We think we understood that. Anyway.. Price action is on it's way down to a small level of resistance where we could see a bounce. RSI has bounced down off the 50 level and has broken down from it's main trend line; signaling a move lower. OBV has just begun to move down out of it's upward channel and also faces a level of resistance that could lead to bounce.
What Seems Legit?
A bit more of lower movement to hit the levels of resistance outlined above, then further downside
Chart Key
Yellow Solid = Major Trend Line
Yellow Dashed = Minor Trend Line
Red Solid = Major Support or Resistance
Red Box = Resistance
Green Boxes = Supports / Target Areas
Teal Dotted = Small Level of Resistance
Aqua Highlighter = RSI / OBV Breakouts
Price Chart
After the recent bounce of the level of resistance (Red Box) the SPX snapped it's first small level of resistance (Teal Dotted) and has continued lower. Price has also closed below the 50-day EMA while the 12-day and 26-day have recently crossed and the 50-day flattens out. The next level of support (First Green Box) should come into play within the next several days, unless we get a big sell-off Friday and hit it today, but this is the first area we expect to see a bounce. Also notable is the minor trend line (Yellow Dotted) that has been broken which should lead price action to eventually come in contact with it's major trend line (Yellow Solid) again.
Relative Strength
Not a lot to show here, however there have been two significant moves. First is the rejection of the 50 level (Aqua Circle) and the second is the break below (Aqua Highlighter) the major trend line (Yellow Solid). Both of these moves fortify the recent price action and indicate further weakness in trend.
On Balance Volume
OBV broke out of it's downward trend back in May (Yellow Solid) and started trading in an upward channel after. There hasn't been a reversal formation, but there is a small breakout forming (Aqua Highlighter) that coincides with recent price action and RSI movement. More evidence of an upcoming bounce is seen as a level of resistance is also being approached (Red Solid)
TLDR;
Dang man, talkin' bout no time man, dang ol' markets bleedin' man, come on up or dang ol' down man. Uh.. yea.. We think we understood that. Anyway.. Price action is on it's way down to a small level of resistance where we could see a bounce. RSI has bounced down off the 50 level and has broken down from it's main trend line; signaling a move lower. OBV has just begun to move down out of it's upward channel and also faces a level of resistance that could lead to bounce.
What Seems Legit?
A bit more of lower movement to hit the levels of resistance outlined above, then further downside
Chart Key
Yellow Solid = Major Trend Line
Yellow Dashed = Minor Trend Line
Red Solid = Major Support or Resistance
Red Box = Resistance
Green Boxes = Supports / Target Areas
Teal Dotted = Small Level of Resistance
Aqua Highlighter = RSI / OBV Breakouts
Catatan
Looks like Monday morning futures is starting to make the bounce, bounce. Idea for the week; earnings stay in line with the narrative of "current quarter beats with lowered guidance", then, big brother JP at the Fed swoops in Friday and throws us a life-ring made of cement sending us lower.
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