The double bottom on SPX broke up yesterday with a target in the 2069 area, slightly above range resistance in the 2064 area. I’m looking for some retracement this morning to establish a rising support trendline. SPX 5min chart:
On the SPX daily chart SPX broke back over both the middle band and the 50 DMA. The next obvious target is the daily upper band, currently at 2069, and at the same level as the double bottom target of course. SPX daily chart:
On CL a smaller double bottom has already played out and CL is testing resistance on a larger double bottom that would target 59.88 on a sustained break over 51.73. That would be a decent fit with declining (possibly megaphone) resistance and I think this might well play out. This current move should be the strong rally before the low that I have mentioned a few times and after this move ends I’ll be looking for a retest of the lows to continue to set up a larger bottoming pattern. CL daily chart:
I’m looking for some retracement to set up a decent rising support trendline on SPX but as long as we don’t see a break below yesterday’s low at 2022.71 I’m looking for a move back to test range resistance in the 2064 area and very possibly a hit of the double bottom target in the 2069 area.
