Yesterday closed green but was nonetheless a significant technical fail for the bulls, as there was a very strong bottoming setup that needed the opening gap to hold, and it was filled within minutes with a strong rejection from the opening highs. Most of the subsequent dump was then retraced but it remains to be seen whether the bulls can recover back to that opening high at 2029.
If SPX can recover that far then the important resistance levels today are that high at 2029, falling wedge resistance at 2037, and main resistance is at the meeting of broken rising wedge support, the 50 DMA, and the daily middle band all in the 2045 area. SPX daily chart:
If we are going to see a fail into new retracement lows from here, then yesterday’s action set up a double bottom that could deliver that on a break below yesterday’s low at 2004.49. SPX 60min chart:
If the bears can break this below yesterday’s low then I’d expect to see new retracement lows not long afterwards. If yesterday’s high is broken with any confidence then the obvious next upside targets are 2037 then 2045. The 2045 test should be the key if we see it, a hard fail there should be the start of a new leg down, a conviction break up through it should deliver at least a test of the all time highs.
Apologies for the late post today. Intense morning. 🙂
