Now that the S&P 500 has broken below the key 4200 level, what’s next?
Investors have been focused on the 4200 region on the S&P 500 chart because of a confluence of support levels. The 200-day moving average, the February 2023 high, and the 38.2% Fibonacci retracement level all come in right around 4200.
Mindful investors know that in a distribution phase it’s all about the trend. As long as the SPX continues a pattern of lower highs and lower lows, the downtrend is in place. But how can we use the technical toolkit to anticipate potential price support, where buyers may actually come in to reverse the market higher?
In today’s video, we’ll use technical analysis tools, including price patterns, Fibonacci Retracements, and support and resistance levels, to identify three potential downside targets for the SPX.
- What can the recent head and shoulders topping pattern indicate in terms of downside objectives for the S&P 500?
- Why is the 3800 level still very relevant for the SPX in the fourth quarter of 2023?
What would we need to see to identify a bullish rotation for growth stocks?
VIDEO: S&P 500 Index Fibonacci Retracement Levels
The author may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.