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The $SPX Index broke down through 4330 a week ago (Friday, September 22nd), tried to rally back above it for one...
This article was originally published in ...
Join Larry McMillan as he discusses the current state of the stock market on September 25, 2023.
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By Lawrence G. McMillan
The $SPX Index broke down through 4330 a week ago (Friday, September 22nd), tried to rally back above it for one more day and then gave way to a sharp selloff. Thus, 4330 was not only a crucial support level that has now been broken, but it is also going to serve as resistance. There are a number of things going on right now in the market, but as you can see, there is now a downtrend (red lines in Figure 1) -- lower lows and lower highs. That is a full-fledged bearish trend, not just minor correction.
There is resistance at the 20-day MA of $SPX, currently at 4410 and beginning to drop rapidly. There is a gap on the $SPX chart up to 4400, and that...