And here’s where today’s battle lies; at the 200 day moving average (dma) of the S&P 500.
Already we’ve had two bounces off of that as a vigorous goal-line defense is mounted at this critical level (spx 2768.04):
For TPTB defending these critical levels is where they feel most entitled to act. Breaching such a critical level to the downside does a lot of technical damage, which then leads to a lot of technical selling.
In the end, it’s probably seen as a lot cheaper and more effective to defend these levels than to deal with all the selling that results if/when they are breached. That’s one way to look at it.
Lots of eyes watching this level very carefully today…as I type this we are right back at it…2769.44 … just a whisker away from taking it out.
Will the PTB save the day again? Will they be swamped by too much organic selling? Very entertaining to watch the battle play out in real time.