- The S&P 500 has fallen 2.73% on Tuesday after Monday’s public holiday.
- There are still some key levels of support around that the bears need to break.
S&P 500 4-hour chart
Another bearish session for the S&P 500 on Tuesday after a bearish end to the last week. The index has now made a lower high lower low price pattern and this could suggest the price could fall further but a confirmation of the close below 3358.52 would go some way to spooking the bulls.
Taking a closer look there are some other good support zones too. The black resistance line on the chart is much further down but at the time it was a formidable resistance zone. It had a couple of strong tests and then was used as a good support area before a strong rally. Elsewhere there is an upward sloping trendline marked in blue that could also help stem the losses.
The bull market could continue if the orange resistance line at 3444.38 is broken. But there is a green internal trendline lying in wait and the price could reject there to make a stronger lower high pattern.
Overall there is not much to suggest the bull rally is over just yet. Leading into the September FOMC meeting I am sure traders will push the price to a more critical level. For now, one lower high lower low pattern has been created but a close below 3350.00 could be important in the medium term.
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Additional levels
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