The SPX Levels to Watch + Reminder on Discipline and Focus.

Lots to assess in the $SPX daily chart.

First and foremost, the $SPX touched a new 52-week low today at the flush down.

The good news is that the $SPX did NOT close at the 52-week low. It closed higher than that.

In fact, the $SPX closed almost exactly at the measured move down from the neckline of the slanted head-and-shoulders formation. See picture.

This also happens to be the 23.6 Fib retracement as measured from the prior high of 3/25 down to the absolute low touched today.

So, price seems to be converging at around the highlighted circle in the chart.

Today's price action was quite volatile as you can tell from the last candle in the chart. Not surprising with the $VIX at around 50.

Price opened at 4953.79 which was another gap down (3rd in a row). It went down all the way to 4835.04 (the 52-week low point as of today). It went up all the way to 5256.47. Then closed much lower at 5062.25.

The close price is still below the Friday close, so it was a red day.

But the fact that price was able to close the gap from the morning and NOT close at the low of the day in itself is a positive.

In these times of market stress, one has to look at any positive thing as a positive thing.

That does not of course tell me what happens tomorrow.

Although if I had to bet, I would bet that we have some sort of bounce this week. May or may not be tomorrow.

Accordingly, I have taken a very small position of $SPYU which is a leveraged $SPY instrument.

The 38.2 Fib retracement for the $SPX based on my Fib assessments is at 5199. That is +2.7% from current levels. That is my first target and then I will reassess.

That level is also where I expect the 5-day moving average to converge soon. I will see if price can take out that level as a first step.

Please do your own research. I am not giving financial advice, just providing full disclosure on my actions. Every trader’s situation is different, and they must act as per their system.

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Speaking of doing one’s own thing and having discipline, I posted the below note on X early this morning. Sharing here.

Have a good evening.