Chart of the Day - Tuesday, October 3, 2023

Today’s Chart of the Day was shared by Michael Nauss (@MichaelNaussCMT). The S&P 500 dropped -1.37% today, closing at a four-month low. With the index decisively below the August 2022 highs, all eyes are on 4,200 for potential support. In many ways, 4,200 has been the dividing line between bull market behavior and bear market behavior. It acted as resistance for an entire year before the breakout in early June, and price hasn’t tested it since. We’re about to find out if former resistance = support. Michael points out that this level also coincides with the rising 200-day moving average. The market should find support around 4,200 in the coming days/weeks, but it will be very telling if it doesn’t.