Previously marked out green box is where the relief rally was expected to end. The technical aspect with that point was multi-fold... with a meeting of the trail stop, and a , it was also a point to break the downtrend (within a large range). In the intraday 4H chart, it was also the meeting point with the 55EMA, which of course, it had failed. The close of yesterday’s was also a breakdown out of a . Remember that previously, the S&P500 broke up and out of a , only to re-enter the , and follow through to exit the other side. This story was completed within 7 days last week. And with the second breakdown of the , more downside can and should be expected.
All these point to a lower low, by middle of next week, as marked out by the 🔴 red circle 🔴. And perhaps even further down towards 2500.