SPX Gap-Fill Begins — 20 DMA Key Support or Next Leg Down?
$S&P 500(.SPX)$ : The gap-fill process has begun, and the usual visit to the 20 DMA at the very least (currently near $6,732).
Two days ago, I highlighted the Doji Star, the bearish RSI divergence, the excessive complacent sentiment, and yesterday the bearish setup for $NVIDIA(NVDA)$ .
➡️The question now is: Will the 20 DMA provide support (yellow cases), or will the reset continue down toward the lower band? (red zone).
Stock chart of SPX index with daily candlesticks from July to November showing price movement around 5700 to 6000 levels. Red and green candles indicate bearish and bullish periods. Yellow highlighted zones mark potential support areas near the 20-day moving average line in red. Red zones below indicate lower support levels. RSI indicator at bottom shows divergence with price.
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