[isatrader]

The S&P 500 has pulled back to retest a weekly swing low for the first time in over a year and in doing so has formed the first two parts of a potential head and shoulders pattern. So I’m changing my Stage rating to Stage 2B- / 3A, as although not officially yet in Stage 3A, it’s right on the edge of moving into Stage 3A and touched the 30 week weighted MA this week. So a weekly breakdown below the recent lows would confirm the change to early Stage 3A imo.

So it's a critical time for the S&P 500 ahead, although if it does breakdown then there should be some support at the 200 day MA were institutional investors / fund managers like to buy, which lines up with the highs of the summer range which also should provide some support. But if it rebounds here then the 50 day MA is the first hurdle imo.