The index has now dropped below the stronger uptrend line, which effectively canceled the immediate bullish trend and indices might be due for a larger correction.
The price is now testing previous highs at around 3,130 USD and if this level is taken out, the short-term bearish trend could be confirmed, targeting 3,070 USD.
However, as long as the SP500 index trades above the 200-day moving average (3,009 USD), the medium and long-term trend still seem bullish.
The market has been very overbought lately and a correction was needed in order to maintain a healthy uptrend.
On the other hand, if bulls push the index back above 3,190 USD, the short-term trend could change back to bullish.
