The September's swoon that many has been calling for is finally here. The S&P 500 closed down 2 weeks in a row, something we haven't seen since May (another notoriously bad month for stocks). Let's analyze the S&P500's chart today, and chart the course of action for the next few weeks.

On Friday September 17th, we closed right at the Moving Average 50, which has been support for the S&P500 since ... September of last year, when we experienced a 10% market correction. We also fell out of a rising wedge that the index has been in also since ... September of last year, which makes the chart of the S&P500 not so pretty. 

Stock futures indicate we will open Monday down quite a bit, opening price may be below the MA50. We expect there will be some buying that takes place as many traders/ investors see this line as support and buy here. If you're going short, expect the bounce and don't be panicked when you see the market reverses the pre-market losses during the actual trading session. If you're going long on this opportunity, be nimble, as we certainly can reverse the bounce and go much lower when we advance into the trading week, especially with the FOMC minutes on Wednesday and Powell's speech on Friday.

If we lose the MA50, expect the S&P500 to head back to 430-4350 which is the MA 100. We rate this possibility to be 70% probable, only if we drop the MA50. However, once the S&P500 is at the MA100, we do recommend buying. We think once this September's correction is over, market will look towards next year, and there is room to go higher from the MA100.