About to test 2000 again - Reached target 1
Oil prices (see analysis below) drove $SPX down towards the 2000 support zone, pulling it down to meet Target 1 of the bearish Gartley mentioned here over the last couple of months
The warning signal appeared on Thursday when $SPX tried to rally back up above the 200 and 50 SMA lines and failed (see red arrow). The result of this failure was felt on Friday's sell off with 2% decline in $SPX that brought it to the 38.2% Fib level (target 1) and just 10 points above the 2000 support zone.
The key zone here, as mentioned, is 2000-2010. If it'll hold as support, we can see $SPX rallying again towards 2040-2060 and its 200 days Moving Average.
If it'll break, next support zone is near 1950, and that's the potential target zone for the bearish breakdown scenario.
Tomer, The MarketZone
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The warning signal appeared on Thursday when $SPX tried to rally back up above the 200 and 50 SMA lines and failed (see red arrow). The result of this failure was felt on Friday's sell off with 2% decline in $SPX that brought it to the 38.2% Fib level (target 1) and just 10 points above the 2000 support zone.
The key zone here, as mentioned, is 2000-2010. If it'll hold as support, we can see $SPX rallying again towards 2040-2060 and its 200 days Moving Average.
If it'll break, next support zone is near 1950, and that's the potential target zone for the bearish breakdown scenario.
Tomer, The MarketZone
This analysis is part of the Weekly Markets Analysis newsletters
To read more interesting technical reviews for the week goo.gl/zLOH1w
To subscribe to the newsletters - goo.gl/HXjCPV
Follow my blog - goo.gl/78KZsl
Subscribe to my Youtube channel - goo.gl/q8dbyT
Comment:
Reached Target level - Now 200 SMA line about to be tested
