S&P 500 (US500) could see further losses toward 4,394 support
Although the indexes failed to post a clear topping formation, the sequence for trading is now lower lows and lower highs.
An interesting support level is located at 4,399-4,391. This is:
• The 261.8% extension level from 4,610 – 4,530 is located at 4399. Elliott Wave analysts could look to this level as the completion of the first bearish wave formation.
• Bespoke support is located at 4,394.
• The 78.6% Fibonacci retracement level from the 4,331 – 4,610 move is located at 4,391.
On the upside, bespoke resistance is located at 4,531. The previous swing low from the 27th of July is located at 4,530. What was support now becomes resistance.
An interesting support level is located at 4,399-4,391. This is:
• The 261.8% extension level from 4,610 – 4,530 is located at 4399. Elliott Wave analysts could look to this level as the completion of the first bearish wave formation.
• Bespoke support is located at 4,394.
• The 78.6% Fibonacci retracement level from the 4,331 – 4,610 move is located at 4,391.
On the upside, bespoke resistance is located at 4,531. The previous swing low from the 27th of July is located at 4,530. What was support now becomes resistance.