U.S. SPX500: The congestion on this timeframe has slowly narrowed
The risk aversion and subsequent sell-off in the equities markets has pushed the U.S. SPX500 lower through Triangle Pattern support at 1138.30 on the 30-minute chart. The congestion on this timeframe has slowly narrowed, but has yet to quiet to consolidation; therefore, follow-through lower is expected to be brief. There is past support along 1131, and this is likely where the bears will reach buying support.
Notice that the prior intraday low from September 28, at 1132.09, is within the projected Forecast support area for the breakdown, plotting between 1133.59 and 1128.52. The four-bar Autochartist Initial Trend reading indicates that this 30-minute time frame is in a distribution cycle, increasing the likelihood that price action will find support within the Forecast range and that bearish momentum will exhaust in this area.
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