October Bites The SPX

By Candy Matheson of Strawberry Blonde's Market Summary

Blogger & Retired Russell 2000 E-mini Futures Day Trader • Oct 5, 2023 at 2:00 PM EDT

Notwithstanding the bearish Head & Shoulders formation on the daily chart of the SPX, its recent plunge below the neckline in the latter part of September, and its subsequent retest and drop lower

Notwithstanding the bearish Head & Shoulders formation on the following daily chart of the SPX, its recent plunge below the neckline in the latter part of September, and its subsequent retest and drop lower, it's hovering above major support around 4200.

Also depicted on the daily, weekly, and monthly charts is the Williams Alligator technical indicator, which shows 3 moving averages, offset into the future.

Take a close look at the weekly chart.

A drop and hold below 4200, followed by a crossover of both the green and red MAs below the blue MA would signal further weakness ahead for the SPX, and possibly a retest of 3600, or lower to 3200.

This is one indicator worthwhile monitoring over the coming days/weeks...on all three timeframes, all of which are forecasting further weakness.

SPX Daily

SPX Weekly

SPX Monthly

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