Observation 1 - S&P 500 is presently at the lower band of the upward channel formed since April 2020.
Observation 2 – Focused view of the last 2 months shows, S&P 500 is seen taking support at 50% retracement level (Oct 4 Low – Nov 22 High).
Conclusion: S&P 500 taking support at 50% retracement level on two months chart when it is at the lower band of 19 months old upward channel is indicating
a) Even with small down moves during the week, S&P 500 can still maintain its position within upward channel as the lower band is upward moving.
b) Decisive close below 4480 may accelerate the downfall.SP:SPX