(The Technical Analyst) Andy Dodd, Head of Technical Research at Louis Capital Markets, warns that a break below 2878.5 for the S&P 500 could be significant. He thinks that downward momentum would increase on a closing break through 2878.5 as the next level of note is some way below at 2818.25 (see Chart).
Though Dodd stresses the S&P remains in a long-term uptrend, he points out that the trendline is some way below current levels (at around the 200-day moving average) and there is scope to fall without jeopardising the long-term bullish picture.
