Summary

The stock market indices were crushed on Thursday, and the rebounds intradays simply sold. With regard to “potential” support, 78.6% of the decline of the rally in August 2024 Lows aims at 5,339 for the S&P 500 (SPX), while 88.2% found at 5,240. From the double top, we could see a motion measured up to 5,200 low. With the SPX, which makes a low closing correction on Wednesday, we have divergences of a bullmost width depending on the percentage of SPX stocks above its averages of 20, 50 and 200 days. The 14 -day relative strength index (CSR) has drawn up a bourgeois divergence after the bicycle to a drop -down territory. But the divergences of impulse and amplitude indicate only a possible reversal of trends. The price is the final referee. The weekly SPX graph shows the support of the trend line, as well as an initial decline of 38.2% of the Bull market since October 2022, between 5,130 and 5,250. The long -term impulse (43 -week RSI) must contain the 45%area, as bad things often occur when there is an additional weekly impulse. So far, the price follows the lower weekly band in Bollinger at the disadvantage. The SPX needs to return to the lower side for an initial purchase signal and pass through the Middle Band to confirm it. On Thursday, the SPX fell 4.8%, its biggest decrease in a day since June 2020 (no