S&P500 hit its 4H MA200 after 2 months. Strong correction ahead?

The S&P500 index (SPX) broke two major medium-term Support levels within the same trading day, the 4H MA100 (green trend-line) and the 4H MA200 (orange trend-line). This is the first time to touch both in 2 months (since April 07). At the same time, it tested earlier its 4H MA50 (blue trend-line) as Resistance and got rejected.

This hints towards the possibility of an even stronger correction, but the Support 1 level (7340) has to break in order to confirm that. And with the 4H RSI oversold (<30.00) for the first time since the March 29 bottom, the probability of a short-term rebound to test the 4H MA100 as a Resistance, isn't low.

If the index breaks below Support 1 though, it technically an immediate Sell extension Signal, targeting the 1D MA50 (red trend-line) around 7220. A 1D candle closing below that too, sets eyes on the 1D MA100 (black trend-line), which is historically the top of the last Support Zone during long-term bull runs. Contact with it can be made around 7015.

Note that, even this Target would be above the 0.5 Fibonacci retracement level of the whole April-May rally, which maintains the long-term trend bullish.

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