The Daily time frame of the S&P500 (SPX) is shown in this chart from May 16, 2018 to Friday close (December 07, 2018). Commentary is provided below in an ascending order based on the numbers marked on the chart:
(1) A break below the bullish trendline that lasted over 2 years has seen price action in the SPX (S&P500) meander between 2 converging lines. Chart pattern that best describes the sideways action after price closed below the trendline is a symmetrical triangle that is tentative. Implications of the triangle include a stalemate between bulls and bears, as well as continuation of the current trend (bearish) upon price breaking out of the triangle.
(2) ~2606.08 and 2540.33 is marks the region of underlying support for the SPX. Price closing below 2540.33 especially indicates more selling/bearish action.
(3) A bearish channel (tentative) is also drawn on the Daily timeframe that should be taken into consideration should price action continue to resolve downwards.
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