Today's market volatility pushed the S&P 500 briefly below a primary support trendline. Figure 1 shows a daily chart of SPX updated after market close. We will be watching closely for further moves to the downside. If support does not hold, the next most likely support could be provided by the SMA200 currently set at 4196. However, this moving average has not shown recent strong support or resistance for SPX price action. In this circumstance, the S&P 500 is on risky ground.
We find no comfort when looking at other major U.S. indices. Figures 2, 3, and 4 show other major U.S. Indices; all are showing brisk moves to the downside. The breadth of this downside move seems wide because all major market segments are involved. The Dow is most concerning given the fact it is now -1.46% below its SMA 200 without any clear upcoming support.
FIGURE 1 - A chart of S&P price action as of 9.27.23 after market close. Note the daily low value below the support trendline, yet the day's close was just above support.
FIGURE 2 - A chart of Dow Jones Industrial Average price action as of 9.27.23 after market close. Note the price action well below both a primary support trendline and the SMA 200.
FIGURE 3 - A chart of Nasdaq Composite Index price action as of 9.27.23 after market close. Note the price action well below the support trendline.
FIGURE 4 - A chart of Russell 1000 Index price action as of 9.27.23 after market close. Note the price action challenging a primary support trendline.
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