SPX S&P 500 Daily Chart; H&S

The H&S (head and shoulders) pattern is shown in red. Price tops-out at 2950, the neckline is at 2800, so the lower target is 2650 if the 2800 neckline fails, and it did. There are gaps below that will need filled at some point forward (orange circles).

Price wants to use the 150-day MA at 2745 as support. Remember a week or two ago, Keystone told you to watch this level since the slope of the 150-day MA is a key metric in determining whether the ticker is in a cyclical bull or cyclical bear market pattern. The SPX remains in a cyclical bear pattern since Q4 with the 150-day MA sloping negative or sideways.

The bulls are threatening to push the 150 higher which will signal a cyclical bull market ahead, however, price is knocking at the door to slip below the 150. By definition, price below the moving average will want to pull the MA down as well. Thus, this 2745 level is key. The 20-month MA is at 2739 so the 2739-2745 support is the last chance corral for the bulls to stop the selloff. Things will get very ugly below here. On the bull side, it would not be surprising to see a bounce and back test of the neck line where a bounce or die decision would be made.

20-week MA 2812
100-day MA 2797
10-month 2782
12-month 2779
50-week MA 2776
200-day MA 2776
150-day MA 2745
20-month MA 2739

S&P futures are own -9 about 3-1/2 hours before the opening bell in the United States. VIX 18.85. It is lights-out for the stock market if 2739-2745 fails. If it holds, price will seek a back test of the key 2776-2782 resistance level.

The slope of the SPX 150-day MA remains flat or negative verifying a cyclical bear market.
The SPX is below the critical 12-month MA at 2779 verifying a cyclical bear market.
The NYA is below its critical 40-week MA verifying a cyclical bear market.
The UPS 20-week is below the 50-week MA verifying a cyclical bear market. 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 8:21 PM EST: The SPX finishes the Monday session down 8 points, -0.3%, to .... wait for it...... wait a bit longer..... 2744.45. The 150-day MA is 2745.84. LOD 2728.81. The table is set. The S&P 500 makes an important bounce or die decision from the 150 pivot tomorrow. Who will win? That LOD number is very important going forward. Trading was choppy. The new moon peaked at 6 AM EST this morning which creates the negative bias today. Ramadan Ends tomorrow so there may be an increase in religious fanaticism and terrorism in the Middle East and around the globe this week.