S&P 500 Testing Major Support

Conclusion, Investment Implications, Strategy

The benchmark S&P 500 (SPX) is currently testing major underlying support at 3047 to 3028 on an intraday basis. This is where the US broad market index must stabilize for its strategic, major uptrend to remain intact. A breakdown below it, however, would warn that a major bearish trend change is emerging and would clear the way for at least an additional 3% decline to the next support level at 2954 to 2941.

Both our Correction Protection Model (CPM) and Asbury 6 shifted to Risk Off/Negative as of the close on Monday, Feb 24th. Since then the benchmark S&P 500 (SPX) has collapsed by 197 points or 6.1%.

Chart 1 below shows that, as of 9:30 am CST this morning, SPX has collapsed below its green dashed December 2018 uptrend line and is currently testing major underlying support at 3047 to 3028, which represents its 200-day moving average (widely watched major trend proxy) and its September and July 2019 highs. This support must hold for the current strategic (major) uptrend to remain intact.

Chart 1

However, a significant (more than a few index points) and sustained (more than just a day or two) close below 3047 to 3028 support would indicate an emerging major bearish trend change and clear the way for an additional 3% decline to the next support level at 2954 to 2941.

Above the market, the Dec 2018 uptrend line at 3122 now becomes initial overhead resistance. The current corrective decline will remain intact below 3272, which is 7% above the market.

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S&P 500 Testing Major Support

Conclusion, Investment Implications, Strategy

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S&P 500 Testing Major Support

Conclusion, Investment Implications, Strategy

Asbury Research

Asbury Research subscribers get more detail on our latest analysis, and updates to our quantitative models

Schedule A 15-Minute Zoom Meeting With Us To Get More Information >>>

Asbury Research subscribers get more detail on our latest analysis,
and updates to our quantitative models