The Bears are in control of USA stocks on the short and medium term trends but the longer term weekly trend remains up.
S & P 500 Index (SPX) Weekly Ichimoku Cloud Chart
Last week was a big down week in the SPX as shown on the chart by the relatively big down bar. However, the overall weekly SPX trend is still up. Price has broken through the Ichimoku Cloud Base line but price has not reached the Ichimoku Cloud. The markets weekly momentum remains up. Price looks to be testing the pivot low from 10/4/21.
S & P 500 Index (SPX) Daily Ichimoku Cloud Chart
SPX appears to be in a free fall on the daily chart. When price broke through the equal length swing of wave 20 to 21 at 4548 it fell quickly. Price hit both daily profit objectives and found support at the Span B and Fibanocci .786 target.
Price could extend down further to 4301 at the wave 18 old pivot lows.
S & P 500 Index (SPX) 60-Minute Ichimoku Cloud Chart
Price was rejected by the Ichimoku Cloud at the top of wave 2 before the big down move. Price has dropped into our Ichimoku Cloud wave target zone.
As price has exceeded the .618 target within the wave target zone, expect a reversal bounce. The reversal bounce is unlikely to change the trend, rather look for price to pull back towards the Ichimoku Cloud.
Price is very extended from the Ichimoku Cloud on the daily and hourly charts with its latest down move so anticipate it will take a breather before making its next move.
