A few significant things happened today with
SPX
closing the day (2/27) at 2978:
Together, these are short-to-medium term bearish signals for SPX. There isn't another support level until 2790, another ~6.3% from today's close, which would put the market down ~16% from last week's close. We're not gonna hit that tomorrow, but could easily hit that next week.
Obviously, this is a heavily news-driven selling cycle. The problem is, the news isn't looking great. We'll probably see some dip buying soon -- 14-day RSI is at 20 -- a heavy oversold signal. But until the news and potential economic realities turn positive, or at least become fully priced in, it's hard to imagine a strong recovery back to where we ended last week anytime in the next 2 weeks.
SPX
closing the day (2/27) at 2978: - It closed below both the 200d simple and exponential moving average (EMA is more sensitive to recent price changes)
- It closed below a key support level, which it had flirted with earlier in the trading day, only to breach it and close below it at market close.
- We're now down ~10.5% from last week's close, "officially" a correction. Along with mounting corona panic, this is a significant psychological factor.
- Lastly, we closed below 3,000, another important psychological factor, and a level we haven't seen since the end of Oct 2019. This is the least important part, but worth considering nonetheless.
Together, these are short-to-medium term bearish signals for SPX. There isn't another support level until 2790, another ~6.3% from today's close, which would put the market down ~16% from last week's close. We're not gonna hit that tomorrow, but could easily hit that next week.
Obviously, this is a heavily news-driven selling cycle. The problem is, the news isn't looking great. We'll probably see some dip buying soon -- 14-day RSI is at 20 -- a heavy oversold signal. But until the news and potential economic realities turn positive, or at least become fully priced in, it's hard to imagine a strong recovery back to where we ended last week anytime in the next 2 weeks.