We're in the middle of a market pullback or correction. The S&P is now down -4.3% from the high just last week. A technical picture of where we stand today is below with comments.
Since 2013 the 140 day exponential moving (purple line) average has been good support for the S&P 500 index ETF SPY. Also note that the RSI has hit the 30 reading or close on the prior pullbacks we have experienced. To summarize this chart. We are getting close to a moving average trend line and a 30 low reading on the RSI (relative strength index). Both these areas have provided market pullback support in the past.
During the most recent pullback in February, we had hit the fibonacci 50% retracement level before reversing higher, and this current pullback (chart above) that we are experiencing is sitting right on the 50% retrace level, which is a typical retrace for an index prior to reversing higher.
The above chart illustrates what has currently occurred since we hit an all time high of 189.70 just recently. We have pulled back -4.3%. I am targeting a -6% pullback which would run very similar to prior sell offs and put the index at support areas, from the first chart above.
Bottom Line: Most of my technical indicators are signaling that we are getting close to at least a short term bottom on this current sell off. We are close to the first chart above's support line (140 exponential moving average), we hit the 50% retrace on the middle fibonacci chart, and we are currently in the range of prior pullbacks experienced over the past year (third chart) of -4% to -7% range. There has been no technical damage done to the intermediate to longer term time frame chart perspective for the S&P 500 from where we currently stand today. Thank you for reading.
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