The #SPX has been trending lower ever since it was rejected from the 21SMA on Sept 12.
Things to note: - Rejection @ 21SMA @ 4.1K - Bearish cross of 21 below 50 - 9SMA now resistance & looking to curl down. WATCH OUT IF IT DOES - Gap NOT filled, expect more of a bounce possibly into tomorrow/Wednesday - Bear target #1 re-test of July low @ 3.7k - Bear target #2 re-test of July low @ 3.6k
If there's 1 thing to watch, it's the 9SMA. The 9 is VERY powerful, and the fact that price is below it & it's starting to turn down is no bueno for the bulls. It's also super bearish that we've broken back BELOW the BF channel & closed 2 (soon to be 3) daily candles below it.
We missed our gap fill this morning (NDX got it) so I would expect a bigger bounce BUT this does NOT need to happen so be careful.
With that being said, Wednesday is a big day & it wouldn't surprise me if we bounced nicely into the FED FOMC meeting. More on this tomorrow.
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