SPX Daily TA Cautiously BearishSPXUSD daily guidance is cautiously bearish. Recommended ratio: 20% SPX, 80% Cash.
* BOUNCE WATCH . Equity Indexes and Equity Futures are down, as are Commodities, GBPUSD and EURUSD... meanwhile DXY, US Treasuries, VIX and Cryptos are up. Interestingly, Cryptos have been defiant recently in the sense that they have held key supports in what can be seen as an attempt to decouple from Equities that have continued to crash as DXY keeps pushing higher. Though decoupling sounds nice in theory, until it is confirmed this is likely a delayed reaction for Equities considering that Ethereum fell ~80% from its ATH and SPX has fallen ~25% from its ATH. Key Upcoming Dates: September US Consumer Confidence Index at 10am EST 09/27 ; August US New-Home Sales at 10am EST 09/27 ; 14th GDPNow US Q3 GDP estimate at 10am EST 09/27 ; Final US Q2 GDP revision at 830am EST 09/29; August US PCE price index at 830am EST 09/30.*
Price is currently trending down at ~$3660 as it risks losing $3707 minor support, if it can't bounce here then the next support (minor) is at $3516. Volume is currently Low and on track to favor sellers for a fifth consecutive session if it closes today in the red. Parabolic SAR flips bullish at $3945, this margin is mildly bullish. RSI is currently trending down at 27.25 and is still technically testing 28.63 minor support as well as the uptrend line from August 2015 (32). Stochastic remains bearish and is currently attempting to complete a trough formation at max bottom. MACD remains bearish and is currently trending down at -92.25 as it's still technically testing both -76.22 minor support and the uptrend line from August 2015 (~-82) as support. ADX is currently trending up at 25 as Price continues to fall, this is bearish.
If Price is able to bounce here it will have to close above $3707 minor support for it to potentially retest the lower trendline of the descending channel from August 2021 at ~$3800 as resistance . However, if Price continues to fall here then it will likely retest $3517 minor support for the first time since November 2020. Mental Stop Loss: (two consecutive closes above) $3707.
