Toady 10/23/17 the SPX again gapped up on the open and within seconds of the open began to decline.
The open was the high of the day and prices steadily declined almost the entire day.
There is a very high probability the buying panic has ended.
At least an intermediate top that could hold for months is probably in place.
I had previously posted about the possibility of the US stock market going into a 34 day mini crash.
This now looks like a low probability because the 34 day period now crosses into one of the slowest
trading times - the week of Thanksgiving.
Its doubtful that a crash could occur in such a normally slow low volatile time.
I had also posted that a break below SPX chart support at 2320 could be a panic point because a break below this support would
also break below the 200 day SMA and with no other chart support the door would be open to a decline all the way down to the 2140- 2160.
The 200 day SMA has now moved up to the SPX 2420 area near new chart support.
Because of the Thanksgiving holiday trading - chart support and the 200 day SMA will likely hold prices for at least a few weeks.
If prices break below 2420 it probably won't be clear sailing to significant support at 2140-2160 because
of near by support at 2320.
If the SPX can reach 2140-2160 it will now likely chop its way down over a period of at least two months, possibly longer.
There's a high probability the SPX could decline to the 2420 area by November 17 -20.
Mark
The open was the high of the day and prices steadily declined almost the entire day.
There is a very high probability the buying panic has ended.
At least an intermediate top that could hold for months is probably in place.
I had previously posted about the possibility of the US stock market going into a 34 day mini crash.
This now looks like a low probability because the 34 day period now crosses into one of the slowest
trading times - the week of Thanksgiving.
Its doubtful that a crash could occur in such a normally slow low volatile time.
I had also posted that a break below SPX chart support at 2320 could be a panic point because a break below this support would
also break below the 200 day SMA and with no other chart support the door would be open to a decline all the way down to the 2140- 2160.
The 200 day SMA has now moved up to the SPX 2420 area near new chart support.
Because of the Thanksgiving holiday trading - chart support and the 200 day SMA will likely hold prices for at least a few weeks.
If prices break below 2420 it probably won't be clear sailing to significant support at 2140-2160 because
of near by support at 2320.
If the SPX can reach 2140-2160 it will now likely chop its way down over a period of at least two months, possibly longer.
There's a high probability the SPX could decline to the 2420 area by November 17 -20.
Mark