The S&P 500 Index was unable to penetrate the 2820 level last week, but was able to hold support at its 200 day moving average. On Friday, it managed to form a hammer candle on weak overall volume.
In early Monday morning trading the index has moved below its 200 day moving average. It is trading down 25 points near its low.
Today’s close relative to the 200 dma will be a strong indication of the short term direction of the broader market. Volume will be a key component of the closing analysis.
Over the intermediate term the 2820 level is primary resistance and the open October gap down at 2685, if it is filled, should then act as support.