Summary
Stock indices faced significant losses on Thursday, with any intraday rebounds quickly met with selling pressure. Potential support levels include a 78.6% retracement at 5,339 and an 88.2% retracement at 5,240 for the S&P 500 (SPX). The presence of a double top pattern suggests a potential move into the low 5,200s. Despite some positive indicators such as bullish breadth divergences and a bullish momentum divergence on the 14-day RSI, the final arbiter remains the price action. The SPX weekly chart indicates trendline support and retracement levels between 5,130 and 5,250, with a key level at the 45% area for longer-term momentum. Currently, the price is following the lower weekly Bollinger Band, needing to reclaim it for a potential buy signal. Thursday saw the SPX drop by 4.8%, marking its largest single-day decline since June 2020.
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