The move down from the high has covered nearly 27% and tested a key trend line
The S&P index is currently trading down -14.5% on the week, but things could have been worse. The brought index is currently up 2.55% on the day. It is not much relatively, but it is a step in the up direction in what has been a pretty precipitous 4 weeks of declines.
Looking at the weekly chart above, there is a glimmer of hope that a bottom may be in place. The low price yesterday reached down to 2478.86. That did take the price below a key trend line connecting lows from 2011 to lows from 2016. That trend line comes in at 2500. The inability to stay below that line gives dip buyers some hope that the low is in place.
The move up from the high the low has covered 914.66 points. The high price came in at 3393.52 and the low fell to 2478.86. The decline has total 26.95%. A 20% decline is considered a bearish market.
The modest gains today, and move back down from over 6% gains at the opening, is not the best of news. However traders can still hang a hat on the idea that perhaps the 2500 level will provide support. That's the hope. Whether it is the reality, the price action will tell the story.
