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SP500 at the close --- 4,361.19 -30.15 (-0.69%)
The SP500 opened at 4385, off 6 points. It dropped another point, quivered for a few minutes, then rose, reaching 4416, up 25, before 10:00. After a 10 point drop it hit near that level again before falling rather sharply to a lo of 4370 before 2:00. From there it ran mostly sideways until 3:30, when it was in the midst of another slump into a new late day lo, less than a point below the close. This is an outside day, with the hi higher by 4 points, and the lo lower by 26. The span was 55, surrounding the 55 day EMA.
Over the weekend Elliott wave analyst Avi Gilbert pointed out 4380 [top red line on the chart] as a critical level to watch. He suggests that a sustained break of that level could indicate that the correction is not done, and could go on further for days or even weeks -- with a chance of reaching as deep as 4050 to 4100. Today's lo is 20 points [0.44%] under 4380. This, on its own, does not constitute a meaningful break. I'll be watching this level as we go forward, assuming that Avi is on to something. The rest of this week could be important.
The DJI followed a similar path, finishing 10 points above its late day lo. It also had an outside day, by 109 points at the top and 175 at the bottom. Its span was 465, and contained the 55 day EMA.
The NASDAQ also followed a similar path. It had a clearly down day by 34 and 87 points. It remains under its 55 day EMA.
The Russell 2000 followed a roughly similar path, but stayed closer to neutral for most of the afternoon before falling at the end. It had a clearly down day by 5 and 12 points. The 55 day EMA contained in the day's span. It fell a little less than the other indexes.
Things were looking good in the morning, but pretty dismal at the end. It this a dumb money – smart money dynamic?
SP500 Closings -
10/04/19 - 2971
10/09/20 - 3477
09/10/21 - 4459
10/11/21 - 4362
A/D = 1417/1826 = 0.78
A/D Vol = 0.65