SPX & NDX: Make or Break
Unlike August, when the RSI also hit 30, the candle is not currently below the lower Bollinger Band. The band continues to widen, price remains below the 200 DMA, and the candle lacks reversal shape. This critical moving average is now acting as a clear resistance.
Any potential bounce would come from the 4H hammer, if so, it could be short lived.
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The 200 DMA (blue line) has been breached by 4%. If this persists, a new bear market signal would be confirmed, similar to 2022. The RSI is at 28, a level that has historically triggered bounces (yellow arrows). Quick recovery coming?➡️The daily candle says no.
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This could be the 3rd Trump’s bear market➡️ The silver lining is that Trump's bear markets have been intense but relatively short-lived, lasting just three months in 2018 and two months in 2020. Will the third be different?
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