If you haven't read my previous post Meaningful Support levels, please do so before reading on.
I wanted to pull in for a closer look at the support level, if broken, on a market CLOSE (not a open below and closes above, etc) we can expect a meaningful stock decline. Depending on when, the close must close below the green rising line, range of S&P 500 385 (tomorrow) -395 (oct 24th). A break above the line is a bullish indicator.
This trend line up has been in tact since March 2020. A close below we should expect the market to decline by a full 20% over the month(s) following.
On a positive note, the world is worse off, much much worse off than USA. For this reason, we may see INFLOWS of capital into USA and we may resume the bull for up to 9 months ahead. I am not convinced the market will fall 20% in the near term. This is a watch and wait to understand the direction.
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