Some thoughts on the recent price action

Gotta admit, the recent price action this week was kinda scary, where more than half of the gains made in the SPX in 2024 was wiped out just in a span of 3 weeks . But in times like these, it is always good to zoom out on the charts to see the bigger picture.

Now zooming out & looking back at the charts for the past years, it's suggestive to see that this downward movement may just be a healthy pullback to certain MAs in the Monthly & Quarterly charts.

On the recent close on Friday, the price in the SPX had reached down to a level that is in confluence with the Weekly 20MA & the Monthly 5EMA. These tend to act as some form of support.

Weekly Chart:

Monthly Chart:

And given the oversold reading on the RSI, with price being outside of the lower Bollinger Band, there may be some sort of a bounce next week. HOWEVER, there is no suggestive reversal candle in the Daily chart on Friday's close, which suggest that there is more downside to come before that happens.

Daily chart:

Now another interesting thing I've found is in the confluence of the Quarterly 5EMA with the Monthly 10EMA, at the 2022 highs. These MAs have been the destination for some pullbacks on the larger timeframes the past years. But that's another 4% drop. Will that happen? Who knows

Quarterly chart:

Monthly chart:

So, what I'm trying to say is I do not think that this is going to be another "End of the World" type of crash in the market. But of course, I'm just another average retail trader in the market, what do I know about the future .

My purpose in this post is to hopefully help some newcomers gain some perspective on the bigger picture, and to log down my thoughts on my page.

Cheers