TECHS: In the context of the sell-off in...>

EQUITIES: TECHS: In the context of the sell-off in the SPX, it is worth

reflecting on the L/T trend and where key support potentially is. Two technical

tools are worth monitoring over the next few weeks and even the next few months:

- A 50-month EMA currently intersects at 2626.51. Why is this average important?

- The slope of the average is still positive and signals the L/T trend is up.

- The average highlighted a strong area of support in 2011, 2016 and 2018.

- As long as the slope remains positive and it provides an area of support, the

long-term uptrend is unchanged.

- A second tool is the long-term trendline support drawn off the Mar 2009 low.

- The line currently intersects at 2390.00 and for now remains intact.

- These tools highlight a major support zone between 2626.00 and 2390.00. 

- For now, the move lower is a major correction and not yet a major reversal.