Stock market bulls have had a rough go of it lately. After touch up as high as 4100 last week, the S&P 500 dropped to 3850 in 4 sessions closing the week below 3900 and triggering a sell signal.
Further, the S&P 500 was headed lower on Monday again.
The index is now trading below the lower end of its ellipse sell signal (reversal).
Using the longer-term “weekly” trading chart, we come up with downside price targets of 3500 (MOB band) and the MFU-3 price target at 3029.
On the shorter-term “daily” chart, we see 3640 come up as a potential support level for a bounce and 3370 as lower channel support.
This bear market appears to have another leg lower.
Twitter: @GuyCerundolo
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