SPX price action declined to its primary uptrend line support today, Tuesday September 26, 2023. The low for the day, 4,265, was on the trendline. The close was just above this level at 4,273. Figure 1 shows what is now the third time this primary uptrend line has been visited by SPX price action. The prior two support zones are highlighted in orange. Because the trendline is only defined by two prior points, it is not able to offer ironclad support. However, market participants should observe how the market reacts over the next few days to better understand how the rest of this year will play out. If clear support is provided, it will be a bullish signal. If price action continues lower and through the trendline, bearish times may be ahead.
FIGURE 1 - A daily chart of SPX showing its primary uptrend line in light green. The secular uptrend line which we have codenamed "Jawbreaker" is seen in the lower right aspect of the chart. The prior downtrend primary wave is seen ending on the left side of the chart.
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