S&P 500 short-term top and bearish switch
· We stated in our last report to our clients that “we see bias for a roll back lower to the range, and for a retest to 1968.0. The mounting threat for latter September is through here.” The plunge lower from ahead of a firm barrier at 1999.25 leaves risk still lower having also surrendered the 38.2% retrace of the rally from August in the ADC chart at 1964.0.
· This completes a more notable topping structure, favours a deeper correction and targets chart/ retrace support at 1950.0/48.5 into month-end (Friday?).
· Overshoot threat is to the 100-day MA, currently 1944.5 and maybe the 61.8% retrace at 1933.0.
WHAT CHANGES THIS?
· Above 1976/77 eases bear risks; through 1992.5 signals a neutral tone, only shifting positive above 1999.25.
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4 Hour S&P 500 E-mini December Future Chart
Daily S&P 500 Future Adjusted Continuation Chart