Technical Analysis | US Stocks Start to Decline? Don't Panic, Still within Trading Range

As measured by the S&P 500 index, the US stock market is still within its trading range. However, with the S&P 500 index falling below its 20-day moving average this week, coupled with the conclusion of the Federal Reserve's decision, the US stock market seems to be starting a downward trend.

This is also a seasonally weak period for the market, which may contribute to bearish views.

However, the support level of 4330 points is the truly important one. As long as this support level remains unchanged, the S&P 500 index will still be within the trading range of the past few weeks, between 4330 and 4540 points.

Therefore, if the S&P 500 index falls below 4330 points or breaks through 4540 points, it is likely to bring some strong trend signals to the market.

Since the S&P 500 index has been in this trading range, the actual volatility has decreased.

These calculations are based on closing prices; the intraday trends on many trading days have been unstable, but the prices at the close have hardly changed.

Therefore, the "adjusted Bollinger Bands" are now relatively close. Nevertheless, the S&P 500 index has not yet touched any +/-4σ volatility bands, so the McClellan Volatility Bands (MVB) buy signal still exists.