S&P 500 bearish shift and extension threat
· We stated last week in our client reports that the Thursday break below the 1942.5 swing low completed a notable top/ bearish shift and leaves risk into early August lower.
· Moreover, we stated in our last report that “the risk is now to a key confluence of chart/ trend line/ retrace supports at 1917.5/16.0/13.25”.
· The Friday probe here leaves risk still lower this week to a minor prop at 1906.25 ahead of the 100-DMA and psychological/option support 1902.5/00.
· Critical this week through will be the confluence of trend lines from June 2013 and Nov 2012 at 1891/88, with a break signalling a more bearish shift.
WHAT CHANGES THIS?
· Above 1936.0 eases bear risks; through 1956.5 signals a neutral tone, only shifting positive above 1979.5.
See full report with levels & latest screencast here: http://members.marketchartist.com/Daily/sp500.pdf