Head and shoulder pattern(pink)
SPX overextended above the trending Channel (Orange Channel)
retraced back inside the channel to the 50% Fib level (the large up move)
Broke the support at around 3250 and currently at the support level 3160.
The theory is it going to rebound back to the 3250 levels before it starts dropping again to the purple support area at around 3000. There is strong support at this level as shown. The channel bottom, the horizontal area of support, the 200MA, the potential Fib extension level and also weekly moving averages beside the psychological support of the round number.
From that point, it should start to recover. It broke further down, there are other support levels, but that might signal a bear market.
SPX overextended above the trending Channel (Orange Channel)
retraced back inside the channel to the 50% Fib level (the large up move)
Broke the support at around 3250 and currently at the support level 3160.
The theory is it going to rebound back to the 3250 levels before it starts dropping again to the purple support area at around 3000. There is strong support at this level as shown. The channel bottom, the horizontal area of support, the 200MA, the potential Fib extension level and also weekly moving averages beside the psychological support of the round number.
From that point, it should start to recover. It broke further down, there are other support levels, but that might signal a bear market.