At the end of March we posted an analysis explaining why SPX was vulnerable to a move lower from the 4600 price level it was in. Over the following weeks we updated our analysis saying that a move below 4350 would be an added bearish signal.
Red lines -Fibonacci extension targets
Blue lines- horizontal support levels
SPX has broken again below the 23.6% Fibonacci retracement and is heading towards the 38% Fibonacci retracement of the entire rise from the 2020 lows. This decline is justified and wanted by bulls because healthy bullish trends, include healthy pull backs. The FOMC meeting is this week and we could see increased volatility then. Technically SPX remains vulnerable to a move lower according the Fibonacci extension targets taking into consideration the first leg down and the lower high in March.
