SPX just reached our next downside target: the SMA50 at 2102.57.  From Monday’s forecast:

Initial support is at the .886 at 2124.37, followed by the purple channel top at 2119 and SMA50 now at 2102.

It could get a bounce here, but there are several lower targets that will easily come into play if USDJPY cooperates.

continued for members…

The next targets still include the SMA100 at 2095ish and the SMA20 at 2091.  Odds are the bulls will try to construct an IH&S by reversing somewhere between 2077-2089 (it would make for a fairly symmetrical right shoulder.)  But, the SMA100 would do just fine and it usually has more import.  We’ll see.

If the SMA100 is to be the next serious target, look for this bounce to be small — perhaps the SMA10 at 2111ish.  Keep an eye on USDJPY, which is hanging on to tenuous support:

UPDATE: 3:30 PM

SPX has nearly reached the SMA100, dropping as low as 2098.63 versus the SMA100 of 2095.64.ES, however, has completed a very nice channel formation and might be done.