The S&P500 closed on a bearish note, but price action pulled back from the intra-week lows.
The bearish price action comes following the previous week’s doji candlestick pattern.
If we see a follow-through to the downside, we might expect further declines in the index. For the moment, price is supported above the 3388 level.
In the case that this support level breaks, we could see further declines.
With the next key support level near 3275, it would mark a rather significant pullback in prices. But heading into the week ahead, we could see some volatility building up in the index.
This comes as the US goes to vote for its 45th President in just a week’s time. To the upside, unless we see a breakout above the previous all-time highs, price action is likely to consolidate near the current levels.