The warning signal appeared on Thursday when $SPX tried to rally back up above the 200 and 50 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 .
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 is near 1950, and that's the potential target zone for the breakdown scenario.
Tomer, The MarketZone
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