I last wrote about the SPX in my post of December 3rd.
Here’s a Daily chart of the most recent market action on the SPX as of Friday’s close. Price ended around the near-term support level of 2000. You will note that this level sits at a confluence of price and channel support, which has been broken on the last major swing down, during which, the Momentum indicator made a lower low. I’d say that if price re-tests the 1800 level and fails to hold, we could be looking at a possible major decline ensuing, especially if the Momentum indicator makes a lower swing low. Whether we see such a scenario happening before the end of the year remains to be seen…perhaps not until January. (more…)