S&P 500 Does it Again: Heads Down for the 5th Straight Day

The Daily View for S&P 500

  • At the time of this writing, SPX’s price is down -3.54 (-0.08%) from the day prior.
  • It’s been a feast for bears operating on the daily timeframe, as S&P 500 has now gone down 5 of the past 5 days.
  • If you’re a trend trader, consider that the strongest clear trend on the daily chart exists on the 100 day timeframe.
  • The moving averages on the daily timeframe suggest a bullishness in price, as the 20, 50, 100 and 200 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend.
  • Divergence between SPX’s price and its RSI may be manifesting. As such, be on the lookout for trend reversal in SPX’s price.

Below is a daily price chart of S&P 500.

SPX

Featured S&P 500 Idea From TradingView

Below is a trading comment entitled Apple The chart warned us 3 weeks ago you may find interesting:

Hello everyone, as we all know the market action discounts everything 🙂 _________________________________Make sure to Like and Follow if you like the idea_________________________________ On August 24 I posted my analysis on the Apple stock and warned that a big divergence has been found between the market and the RSI and MACD indicators which usually indicates a drop in the market value and we can clearly see that it turned out to be a true sign. https://www.tradingview.com/i/joWRau6o/ Fear of contagion from China’s Evergrande’s potential collapse drove investors out of equities in a rush for safety on Monday, with the S&P 500 and Nasdaq suffering their largest daily percentage drops since May.(NASDAQ:AAPL) was among the biggest drag on the Nasdaq and the S&P 500, Where the stock price dropped from 156.80 to 141.05. That’s more than a 10% drop in less than 10 days.The short-term trend is negative, but the long-term trend is still positive. So although the long term is still positive, this may be a trend turning.Possible Scenarios for the market :Scenario 1 :The Market has broken the support line at 144.94 and now it looks like it will be headed to the support zone located at 138.42 where the Main battle will happen that will determine the direction of the market for the next period of time. If the bulls were able to gain control back over the market then we will be seeing a bounce in price t…

GabiDahdouh