Weekly chart for S&P
Daily chart for S&P
The indexes failed to hold their supports on Tuesday and broke down. To me, this is an indication that the 6 month sideways movement had began. Resistance for this sideways movement will be at 1215. We shall see where the supports are over the next few weeks.
We are currently at the first support level of 1175. We should see a bounce of not more than 50% Tuesday’s down candle before continuing the downtrend. This will be around 1186. Should this 1175 support fail, the next support levels are 1150, 1130 and 1100. I’m not expecting a downward movement beyond 1100 yet.
Be prepared to see gold, silver and crude oil move together with the market and the dollar to move inversely to it.