S&P 500 has now seen a break below key support at 3940/27 to warn of a more important turn lower.

Weekly close below 3730 to reexpose 3505/3492

“S&P 500 has broken key support from at 3940/27 on increased volume to mark in our view an important break lower. We look for this to clear the way for support next at the 61.8% retracement at 3764/60 and then we think the 200-week average at 3730. Our bias would then be to look for the market to stabilize around 3730.”

“A weekly close below 3730 would be seen to reexpose the 2022 low and 50% retracement of the 2020/2022 bull trend at 3505/3492.”

“Back above 4018 is needed to suggest we may have seen a ‘false’ break lower but with a break above 4078 needed to reassert an upward bias for strength back to 4195.”