S&P 500 Technical Outlook – Just Like That, Big Trend Support Test Upon Us

SP 500 Technical Highlights:

  • Things have suddenly become critical
  • Big test of confluent trend support just ahead
  • 200-day + Feb 2016 trend-line = big threshold

With global stocks falling sharply, see how recent events fit into our outlook for the remainder of the year in the Q4 Global Equities Forecast.

Things have suddenly become critical for the SP 500

Yesterday’s 3% swoon in the SP 500 has the market on the verge of testing major long-term trend support. The powerful combination of the trend-line running up from the end of the 2015/16 correction and the 200-day MA are viewed as quite significant, and the market agrees.

Earlier in the year the confluent support was tested on three occasions after the top in January, holding each time. This forged the ‘line-in-the-sand’ even further. At the time of this writing the SP will be gapping down into this critical area.

How the market responds will be very telling. As per usual we will give it the benefit of the doubt that it will hold, at least on this initial test. Watch for a wild turnabout to determine whether the market wants to try

Article source: https://www.dailyfx.com/forex/technical/home/analysis/spx500/2018/10/11/SP-500-Technical-Outlook-Just-Like-That-Big-Trend-Support-Test-Upon-Us-PRtech.html