markrivest

Break Below SPX 3198.60 is Bearish

TVC:SPX   S&P 500 Index
My prior USDJPY post noted a break below a tight double bottom could be bearish .
The SPX has a similar situation, a break below 3198.60 could open the door for more downside action.

My prior SPX post noted a break below the lower rising trend line could be bearish . Usually, when this happens the prior support trend line then becomes resistance, which has happened. If the SPX moves back above this trend line it could be bullish .

Two - hour Stochastic has just recorded a bearish crossover in neutral territory. This cross implies two - hour Stochastic could soon travel down to the oversold zone.

Mark

Comments

If the 2hr hits oversold, that could trigger a bounce right or do you mean that the 2hr has to be oversold to have a meaningful pullback? Thank you!
Reply
markrivest manifresca
@manifresca,
Whenever Stochastic gets into the oversold zone, regardless of time scale you need to be on alert for a bottom.
Note what happened on July 26th - when the 2 - hour Stochastic was deep into the oversold zone.

Mark
Reply
FOMC likely the trigger for bear move IMO
Reply
markrivest DaddySawbucks
@DaddySawbucks,
Thanks for the comment.
Reply
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