Conclusion, Investment Implications, Strategy

As of mid morning today the benchmark S&P 500 (SPX) is now situated just below Tactical overhead resistance at 4439 to 4465.  This is where the current downside correction in SPX, based on the currently Negative / Risk Off status of our Asbury 6 and Correction Protection Model, should resume if it is still valid.  A sustained move above this resistance area, accompanied by a shift back to Positive / Risk On by the A6 and CPM, would be necessary to indicate this correction is over and the 2021 advance has resumed.

Analysis

The colored highlights show that, as of mid-morning today, the benchmark S&P 500 (SPX) is now situated just below Tactical overhead resistance at 4439 to 4465.

S&P 500 (SPX) daily since April

This cluster of overhead resistance represents:

  • 4439:  the 50-day moving average (minor trend proxy),
  • 4443: the 61.8% retracement of the Sep 2nd to Oct 1st decline, and
  • 4465: the Sep 23rd high.

With the Asbury 6 currently on a Negative status as of Sep 14th and the Correction Protection Model (CPM) on a Risk Off status as of Sep 20th, this cluster of overhead resistance is where the current corrective decline in SPX should resume — if it is still valid.