SPX breaks below key technical support level

S&P 500 Index (SPX) Technical Analysis Report for Dec 02, 2019 | by Techniquant Editorial Team


SPX crashes, losing $27.11 (-0.86%) within a single day
SPX breaks below key technical support level
SPX dominated by bears dragging the market lower throughout the day
SPX closes lower for the 2nd day in a row
SPX breaks below Friday's low


Moving lower for the 2nd day in a row, SPX ended Monday at 3113.87 tanking $27.11 (-0.86%). This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on October 8th, SPX actually gained 0.91% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 3139.34, the index confirmed its breakout through the previous session low after trading up to $28.56 below it intraday.

Daily Candlestick Chart (SPX as at Dec 02, 2019):

Daily technical analysis candlestick chart for S&P 500 Index (SPX) as at Dec 02, 2019

Monday's trading range has been $33.53 (1.07%), that's far above the last trading month's daily average range of $15.93. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SPX.

One bearish candlestick pattern matches today's price action, the Black Candle.

Prices broke below the key technical support level at 3127.64 (now R1), which is likely to act as resistance going forward.

While the S&P is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.

Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for S&P 500. Out of 250 times, SPX closed higher 60.80% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.40% with an average market move of 0.74%.

With four out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are DAX losing -2.05% and NDX closing -1.12% lower. On the flipside the best performers have been NKY closing 1.01% higher and HSI gaining 0.37%. Read more

Market Conditions for SPX as at Dec 02, 2019

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