The SP500 can be priced in multiple currencies. This unique TradingView feature can be accessed at the top right of your screen.
The European market has a lot of money behind it, and they invest heavily in the American market. When pricing the SP500 in EUROS and comparing it to the USD, there are some key differences that allow a technical analysis focused trader to find clues as to the future movements of the USD priced SPX index. It's almost as if the EURO market is 2-3 days ahead of the USD market.
Using some simple TA analysis, one can more clearly see why the SP500 is correcting from this level, and where the answers lie as to where the true bottom of the correction is likely lurking.
TL/DR: The SP500 should bottom in the 3850-3900 area at some point in 2022, as that is an equivalent area of major support for the SP500 priced in EUROS.
The European market has a lot of money behind it, and they invest heavily in the American market. When pricing the SP500 in EUROS and comparing it to the USD, there are some key differences that allow a technical analysis focused trader to find clues as to the future movements of the USD priced SPX index. It's almost as if the EURO market is 2-3 days ahead of the USD market.
Using some simple TA analysis, one can more clearly see why the SP500 is correcting from this level, and where the answers lie as to where the true bottom of the correction is likely lurking.
TL/DR: The SP500 should bottom in the 3850-3900 area at some point in 2022, as that is an equivalent area of major support for the SP500 priced in EUROS.