S&P looks to be losing 20 day SMA and will test 200 day

Feb 17, 2023

Looks like S&P is losing support of the 20 day SMA. You can see that it is currently clearly below the 20 day close SMA and now looks to below the 20 day low SMA. You can see in my chart that when this happens the indicator turns red and almost every time some level of pull back follows. How low is always the questions. It seems like the minimal pull back should be a test of the 200 day SMA (black line). This also corresponds to a test of the previous down channel (orange) and the major support trend line (blue). Note, that we seem to have a clear rejection of the red down channel. Will we retest this resistance after a pull back or will S&P continue lower?

Close up


Look at the 1 week timeframe.

Feb 18, 2023

Note

The close was promising for the bulls as it pulled back up inside the 20 day low SMA band. The bears really need to have the close below this band.

Feb 21, 2023

Note

Lost 20 day. Going to at least test the 200 day.