Black lines -Fibonacci retracements
SPX is trading below 3800 at the beginning of the week. Price has surpassed our first pull back target at 3900 and is now trading below the 38% Fibonacci retracement support. Trend remains bearish in the near term and price is vulnerable to more downside. Our next downside target is the 50% Fibonacci retracement at 3,500. The RSI has still not reached oversold levels in the Daily chart. More downside is expected to be seen over the coming weeks. This could be a falling knife situation so bulls should be very cautious if they try to guess a bottom.
