Monthly Chart Of The S&P 500 Index

Taking a look at the S&P 500 (^GSPC) Monthly chart, we can see how there has been a slight break in the 800 support level. The last time this happened was in the middle of November after which the index broke support very briefly but was able to recover for the next month. The support was also tested briefly in July and October in 2002 and once in March of 2003.  The support has not been fully breached in the past and may hold this time which would signal a possible bottom. However, if this support becomes resistance this will  signal further downward pressure. If it does signal more downward pressure, we will most likely see a pull back to the 800 level which is now resistance, before we continue on downward. Below is a chart of the S&P with the 800 level support showing.

Disclaimer: None, Chart Created with Trade Station Platform

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