S&P500 Eyes August Low After Failing to Hold Above 50-Day SMA

The S&P500 trades to a fresh monthly low (4398) after struggling to hold above the 50-Day SMA (4485), and the index may continue to give back the advance from the August low (4335) amid the flattening slope in the moving average.

S&P500 Index Outlook

The S&P500 is under pressure following the string of failed attempts to push back above the 4510 (100% Fibonacci extension) to 4530 (78.6% Fibonacci retracement) area, with a break/close below the 4310 (61.8% Fibonacci retracement) to 4360 (78.6% Fibonacci extension) region opening up 4240 (61.8% Fibonacci extension).

Nevertheless, the index may face range-bound conditions if it defends the August low (4335), with a breach above the moving average bringing the 4510 (100% Fibonacci extension) to 4530 (78.6% Fibonacci retracement) area back on the radar.