Technicals Forecasting the beginning of a downtrend

The S&P 500 closed just below its 50-day moving average on Friday (October 24, 2014) at 1,965.  So far the index is down about 8 points this morning, validating (at least for now) that the 50-day MA has become resistance.  Should the market continue to trade down, a new trend to the downside should be established, with the all-time high, and the 1,965 tops serving as the upper boundaries (lower highs that connect to provide a resistance line).  A test and subsequent violation of the 1,820 recent low would confirm this downtrend, and should send the S&P 500 down towards the 1,750 level, where I would begin buying.

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