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Many investors use the 200 SMA as a key line in the sand, per when to enter or exit the market. The 500 index is AT/attempting to cross the 200SMA and on a key rising support line, drawn off the 2009 lows.
A break of both the 200SMA and support at (1) increases the odds that more investors will be willing to sell the S&P 500 in the near future.
This was a weekly closing only chart.
What chart are you showing here? If I use a OHLC, C only, O only, HL/2, OHLC/4 I can’t draw the support line you have. I agree w/ the 200 ma though. Should be interesting week.