On Wednesday support at 2860 level on the S&P 500 index chart gave out. The index then dropped an additional 75 points, closing on the 38% Fibonacci retracement level of its 2018 range. This was also the area of the March and June highs, former resistance which should have been support.
In Thursday’s session the S&P saw several attempts at stabilization. As late as the final hour it made a valiant 30 point try at recapturing its 200 day moving average. That effort failed and the index faded back down to close 57 points lower, and below the 50% Fibonacci retracement level.
The 68% retracement level is situated at the 2687 level and that coincides with the June low, which was support in the past. The stochastic oscillator is at a level that, also in the past, has been followed by bounces in the index.
As the week has unfolded to this point, the fundamentals have lost their relevancy, and if the market weakness continues, the S&P 500 index running out of relevant technical levels.