The SPX has corrected just over 10% since the beginning of September, and confirmed a monthly downtrend with the drop below the MTFZ~S.  So far this drop has also confirmed three weekly trends, which may have completed the monthly DT just above key monthly support at 3202.

The SPX dropped below the MTFZ~S, but then closed the week back above the lower level at 3291. If the downtrend is complete the SPX should confirm a weekly uptrend with a daily close above 3316 and continue up into monthly resistance and potentially new all time highs. There are only three days left in September, and the third quarter. The dynamic October monthly and fourth quarter pivots are displayed on the chart below. These pivots, which may move up or down by the end of month, will determine the range going into the years end.

I believe the entire quarterly range may come into play with the upcoming US Election. So hold on tight! This belief is not completely based on a volatile election outcome, but historically based on a similar yearly pivot pattern that can be seen on the weekly chart below. I only provide examples from the 2009 low, but this pattern has a near identical outcome every time the SPX corrects into yearly pivot zone support and swings into yearly pivot zone resistance. The ideal Bullish outcome would be a new all time high going into October, then a drop into the Quarterly Pivot or Quarterly Support, most likely after the November election, then a rise to new all time highs into the end of the year. There is always the possibility new all time highs in October lead to a continued uptrend much higher. This would require another quarterly resistance breakout. The Bearish outcome would be a drop and continued failure below the Quarterly support with a probable drop back to the March lows.

Going into the last week of September look for resistance at MS 3318 and the MP 3422, with support at MS 3202/3112. Good Luck & Trade Safe.

SPX ~ Pivot Zones

SPX ~ Yearly Pivot Zones