πŸ“ˆ SPX Uptrend Broken, Downtrend Confirmed!

AlanSantana Updated   
SP:SPX   S&P 500 Index
We are going to be looking at it through the moving averages and keep it simple this time... How are you feeling today?

I am hoping you are having a wonderful Saturday.

Based on what I am seeing in this chart, next week will be a super bloody, full blown red week and that's ok; the market moves in waves... We are talking about the stock market, the S&P 500 Index (SPX).

βž– A rounded bottom pattern in October 2023 led to a very strong bullish wave.
The bullish wave or uptrend is marked by price action happening above EMA10 and EMA21.

βž– The S&P 500 Index just produced a rounded top pattern, which is the inverse of the rounded bottom, and is ready to crash lower. This last statement is based on the fact that a continuation already took place after EMA10 and EMA21 failed as support.

βž– One final signal: As the SPX trades near its All-Time High, the daily RSI is weak, becoming weaker and moving lower with no support. This after four months of distribution.
πŸ‘‰ The main target for this drop sits around ~4,500, a more than 11.1% drop.

There will be support on the way down and there is also the possibility of prices moving much lower. We will have to wait and see how it all develops and adapt as the bearish wave unfolds.

One thing we know for sure, it can last just 2-3 weeks just as it can last 8 months... That's how shaky right now things are.

πŸ“ˆ SPX Bearish (down) trend confirmed!

βž– The drop/correction is now fully confirmed; the SPX is moving daily below EMA50.

πŸ‘‰ We are seeing the start of a descent toward 4,500, just to start.
We will track how this bearish wave develops.

Good news!

After a bearish wave comes a bullish wave.
Please, always keep that in mind.

Whatever negativity we see is only transitory and all will be good in the end.

Life has its ups and down but we all get to live, don't we?

Thank you for reading.

Right now the SPX is the most bearish it has been since January 2022.
The last time this index was this bearish it continued to drop for an additional 265 days (after the signal).
It is also the first bearish break of EMA10 in almost 8 months.
The correction can be huge... The drop is already on.

This can affect everything in the stock market and related/correlated markets should perform similarly in the coming months, weeks and days.

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