US500 lost more than 300 points on Friday and recorded its worst week in over a month amid increasing inflation concerns and surging coronavirus cases. Today, one can see that the downward move is being continued and the index is currently testing support at 4295 pts which is marked with lower limit of the 1:1 structure and 23.6 Fibonacci retracement of the last upward wave which started in mid-May. Should a break lower occur, then the next target for bears is located around support at 4295 pts which is strengthened by 200 SMA (red line). On the other hand, if buyers manage to halt declines, then another upward move towards all-time high at 4385 pts may be launched.
US500, H4 interval. Source: xStation5
