S&P 500 breaks 200-day MA and August low for further bear pressures
· As we had expected and highlighted in our last report “a weekly close below the previously breached trend lines from June 2013 and November 2012 in the 1945/40 area”.
· The Friday close below here reinforced the previous push down through 1918.0 to also remove chart support at 1915.5 and break the 1910.75 retrace level.
· Already today a gap lower (1892.25-93.25) through the 200-day MA, 1889.0 and key 1882.5 Q3 low.
· A day session push through here would indicate a still more notable top and threaten a deeper correction for 1843.75, 1839.25, 1828.75 and 1826.0 (the 61.8% retrace of the rally for 2014).
WHAT CHANGES THIS?
· Above 1931.25 eases bear risks; through 1968.5 signals a neutral tone.
See full report with levels & latest screencast here: http://members.marketchartist.com/Daily/sp500.pdf
Weekly S&P 500 E-mini Future Chart
Daily S&P 500 Future Adjusted Continuation Chart