The S&P 500 index is fast approaching the lower end of the channel range it traded in from April to August, and its rising 50 day moving average.
The expected result is a period of stability above this support level. The stochastic oscillator made a bearish crossover at the beginning of the month and turned down and moved out of an overbought condition. In the past, this has signaled a downturn in the index, but the nearby reinforced support area, could provide enough time for the stochastic reading to turn positive.
The bottom line is: the integrity of the 2047 to 2337 zone is key to the direction of the index over the short term.