How Low Will The S&P 500 Go?

The S&P 500 has sold off hard this week. Today it is seeing a relief rally following some earnings annoucements.

With several big tech names set to report after the close, will today's bounce see more follow through or are we destined to test the major pivot point at 3,225?

The Pendulum Swings...

Looking at the chart we can see the index is oversold as the 10 day moving average is far above price. A relief bounce was imminent and a move as high as 3360 or so to fill that massive gap (marked by purple box) could be in the cards.

Tech earnings could be the catalyst to give the index some follow through tomorrow, but what then?

The S&P 500 had been in a lower high with that last major top and there is no true support until 3,225.

Should be an interesting week with the election happening.

I covered some of my short position today to book profits on the portions that were green. The rest of the position is still in the red though.

Not trading advice! ;-)

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