The S&P 500 is moving higher since bottoming last Tuesday. A key tool to track the downtrend is the retracement tool. In this case, we are tracking the retracement on the S&P 500 via SPY from the February low to the September high.
There are four retracement levels. The first is the 38.2% retracement which on SPY is 278.02. The second level is the 50% retracement which is 273.23. The third level is the 61.80% retracement which is 268.43.
Currently, the S&P 500 has again broken the 61.80% level. Then worst case the 100% retracement at 252.92.
Yesterday saw a nice improvement on the S&P 500. A move to the February low would probably conclude the downside action unless the S&P 500 just slices through this level which seems unlikely. Pay attention here.
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