SPX: Imminent CORRECTION? Maybe.• Today, we see SPY and futures dropping this morning, a prelude of a correction;
• This isn’t a big surprise, but we’ll have to update a few key points that we mentioned in our previous study, yesterday (link below this post);
• In theory, the index could correct up to its 21 ema, and the bull trend would still be intact, the problem is that the futures already lost their 21 ema, and we see a clear bearish structure on it:
• Futures did a Double Top chart pattern yesterday, and today, the pattern was triggered, while it did a clear lower high/low, losing the 21 ema at the same time;
• The area around 3,969 is the key point now, and only if we see a very good reaction in this area, we would see the index avoiding a further correction;
• A further correction would take the index back to the 21 ema area in the daily chart, which is near the 3,889 support (previous top), as seen on the chart above;
• Although corrections are expected, as long as the index remains above these support levels in the daily chart, the trend won’t actually reverse;
• I’ll keep you updated on this.
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