After the hawkish FED members’ speeches and Powell’s Jackson Hole remarks, S&P 500 turned to the south from the downtrend line which is also supported by the 200-day moving average. Looming recession risks with more tightening monetary policy every other day, markets look a lot weaker.  

After the recent surge, momentum is shifting fast. The relative momentum index gave a rare sell signal, a cross under its own 14-day exponential moving average. For the last 4 signals that come nearly in a year period, 3 of them worked perfectly. With the reversal from the trendline and the bad fundamental outlook, S&P 500 might extend its losses to the lower line of the trend channel. 3900 and 3636 can be followed as possible support levels. As for the bulls, the trend must be broken to reach sustainable upside moves.