Today's price action on the SPX daily chart aligns with yesterday's expectations.
The red candlestick continuation suggests a potential decline tomorrow, adhering to the pattern observed since last week.
This pattern involves rejection at the upper Bollinger Band followed by a visit to the 20DMA.
A crucial level to watch is $5,208. If breached, the index could fall to $5,150, which coincides with both the weekly 5-period moving average zone and the 20-day moving average (20DMA), potentially offering some support.
There are 2 days remaining to change the current weekly bearish candle; while weekly RSI and other key factors analyzed during the weekend are brewing a sell signal.
It remains strongly favored that $SPX has begun the higher degree correction. As long as $SPX continues to remain below 5261, it should start to escalate the decline. It is most likely we continue to stay under 5261 until roughly 4915-4820 is reached.
...If I was a shorting bear or even a perma-bear, I would be saying 'down baby down'.
...Except I am sidelined, neither bull nor bear, my mission is to make you understand Where We're At, so you can calibrate your risk:reward accordingly, but at the end of the day
We Are the Choices We Make
...markets are not the economy, Keynes have said before the markets can remain irrational longer than you can stay solvent. So we should expect periods of disconnect, BUT they don't stay disconnect for too long.
