SPX Hits Downside 775 Target

What's next? Now that the S&P 500 is at some long term support we'll have to watch and see if it can hold. A bounce would make sense here, but with all the other support levels being ignored on the way down we need to see some evidence of a bottom AND the follow through before we can comfortably say that the downward move has stalled. Notice that I said "stalled." We are in a bearish market and at these levels we are likely to be way under the downtrending 200MA on the daily charts which is illustrating our trend. There will certainly be short term rallies to resistance, but in all likely hood these levels we're at today will again be retested in the coming weeks and months.

SPX Monthly Chart: 775 target reached today



SPX Monthly Chart: Showing Next Support Area of 675