This is what happens when the 200 SMA line breaks and there's no Fed coming for rescue (summer vacation?.. ).
Last time it happened, in October 2014, the Fed helped by suggesting QE won't end (which eventually it did..)
1. The squeeze I mentioned in my Weekly Markets Analysis - Price was squeezed between the 200 SMA line (support and the 2100 resistance zone with the 50 SMA line (resistance).
2. The breakdown and the close below the 200 SMA line.
3. The 200 SMA line was tested from below and held as resistance for the time
The RESULT - 100 Points decline in $SPX
Last time it happened, in October 2014, the Fed helped by suggesting QE won't end (which eventually it did..)
1. The squeeze I mentioned in my Weekly Markets Analysis - Price was squeezed between the 200 SMA line (support and the 2100 resistance zone with the 50 SMA line (resistance).
2. The breakdown and the close below the 200 SMA line.
3. The 200 SMA line was tested from below and held as resistance for the time
The RESULT - 100 Points decline in $SPX