Market Analysis (19 July’21)

The S&P500 index dropped 1.59% today and landed on its 50d MA. If the index drops below this critical support during the next several sessions, we might see more intense selling going forward.

SPX, 1d

If S&P500 drops below the 50d MA during the next several sessions, the entire topping pattern might be very similar to the previous two patterns formed in the second half of 2018 and early 2020 (see chart below).

SPX, daily

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