SP500 at the edge

The S&P 500 index is currently poised at the precipice of what could be its most significant drop in 2023. It is forming a low base, indicative of a bearish continuation pattern, right at a major trendline and the 200-day moving average, also referred to as the BigRed.

If and when the S&P 500 breaks through this robust support, it could trigger a substantial decline, possibly reaching the 4050-4150 range, or even lower. Given the barrage of concerning factors such as inflation, negotiations regarding the 45-day bill, Federal Reserve interest rates, the robust and forceful strengthening of the U.S. dollar, and the 10-year yield, it seems increasingly likely that this support level will soon be breached.

Such a drop would help complete the 1st wave of the 5th wave of C, with a target potentially below 3000.

It would be prudent to prepare for a rapid market crash.