The pre-market gap down on Monday gave a strong indication that the congestion phase has ended, and a new multi-week downswing is beginning.
In the process, the SP500 closed within a couple of points of the 1164 support level identified last week-end by OddsTrader app. The new targets are 1140 and 1125, while the pivot line is at 1205.
Judging by the attached chart, the down leg could last until the end of December:
As one would expect, this is accompanied by further deterioration in bullish sentiment, with plenty of room to go to the downside:
