All of yesterday on the 5min chart was spent forming a descending triangle which broke down slightly near the close. There are often false breaks on these and if we see a decent break over triangle resistance this morning then we should make the triangle target at 2055. Falling megaphone resistance is currently in the 2063 area and falling at about ten points per day. SPX 5min chart:
There is increasing positive divergence on all of the 60min, 15min and 5min RSI 14s and the low yesterday was a test of serious support at rising wedge support from the October low. This is a very real candidate for a retracement low here, and at the least there is a very good case for a rally into falling megaphone support in the 2060 area before any more downside. If that megaphone breaks up then the chances are that the retracement is over. SPX 60min chart:
If we do see a further drive down today then this would be day 3 of a daily lower band ride. In that case the lower band should close no lower than 2042 today and if rising wedge support is broken then targets lower down into the 2000 area open up. SPX daily chart:
Nice start for the bulls today. The main upside target here is falling megaphone resistance and bulls really want to break that. Bears want to reverse back down at that test.