The S&P500 rally stalled at a key resistance cluster
The jury is out over whether a bear-market rally has topped, or last week’s decline is simply a pullback ahead of its next break higher. Yet the turn of momentum at a key resistance cluster suggests bears are regaining control.
The S&P 500 had its most bearish week in 5 as its rally stalled at the 50-week MEA, trend resistance, a 161.8% Fibonacci ratio and the September high. The daily chart shows prices closed below trend resistance, and the market has since failed to move back up to 4,000. A bearish outside day formed on Friday to who momentum is trying to turn lower.
A break below 3915 assumes bearish continuation, with 3818.2 an initial target, and a break below 3800 brings 3700 into focus.
The S&P 500 had its most bearish week in 5 as its rally stalled at the 50-week MEA, trend resistance, a 161.8% Fibonacci ratio and the September high. The daily chart shows prices closed below trend resistance, and the market has since failed to move back up to 4,000. A bearish outside day formed on Friday to who momentum is trying to turn lower.
A break below 3915 assumes bearish continuation, with 3818.2 an initial target, and a break below 3800 brings 3700 into focus.
