SPX S&P 500 Daily Chart; Fibonacci Retracements

The SPX (S&P 500 Index; the United States stock market) drops like a rock from 4800+ to 4222; a -12% crash in  only 3 weeks time. The low is placed on 1/24/22 at 4222.62 (remember this number for the future) and price begins a relief rally. The Fibonacci retracements are shown for the big drop (blue lines).

Price makes the first run at moving higher off the bottom but bumps its head on the 38% Fib retracement at 4449. The SPX drops spanked-down from the Fibonacci resistance. Then price comes off the bottom again, pausing at the 200-day MA at 4442, and then pushing up through the 38% Fib at 4449 like a hot knife through butter; it was easier the second time. The SPX then catapults to the 50% Fib retracement at 4519 which is also resistance with the 150-day MA at 4522.

Then, on Tuesday, the  SPX opens  on the 50% Fib at 4519, explores both sides of the key support/resistance level, and decides to finish the day above. The bulls cheer. On Wednesday, price jumps at the opening bell gapping-up above the 20-day MA at 4540 with the opening print at the 100-day MA at 4569, then it was off to the races to the 62% Fib retracement at 4589 while singing,  "Happy Days Are Here Again."

The 62% Fib at 4589 and the 50-day MA resistance at 4622 are the only two obstacles in the bulls way to new record highs. Alas, on Thursday, yesterday, the 62% Fibonacci resistance smacks the SPX downwards and it tumbles big falling back through the 50% Fib. Price is parked at 4477, where the Friday trading day begins. Investors await the US Monthly Jobs Report less than a couple hours away at 8:30 AM EST. 

There is a serious confluence of resistance at 4519-4530 (the 20-day MA at 4540 is dropping fast) so this is where the bull's win the game.

On the down side, there is a confluence of support at 4442-4449 where the bear's win. The battlefield is laid out as the bulls and bears assemble for one last fight before the weekend. S&P futures are flat.

The 150-day MA at 4522 is key since it is flattening-out. This is a great tool to gauge a cyclical bull market versus a cyclical bear. Stating the obvious, if the 150-day MA slopes higher, the index or stock will continue higher and is in a cyclical bull market pattern (weeks and months moving higher). If the 150-day MA slopes lower, the cyclical bear market is in  play there forward, until the bulls can turn the 150 back up.

The 100-day MA at 4569 has played a key support role over the last few years in this age of Federal Reserve money printing that makes the wealthy, that own stocks, filthy rich. The bears are smiling and the bulls are frowning if the SPX remains below 4569. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Saturday Morning, 2/5/22, at 5:00 AM EST: The SPX drops to a LOD at 4451 testing the confluence of support at 4442-4449, and bouncing, running up to a HOD at 4540 testing the confluence of resistance at 4519-4530, and receiving a slapdown during the last half hour of trading, to finish at 4500. Price dances between the 20-day MA resistance at 4530 and 200-day MA support at 4444. The SPX will exit this tightening of the moving averages in one way or the other. Bulls win above 4530 while bears rule below 4444.