Two Steps Forward, One Step Back

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We saw a trend up day that petered out in the afternoon on Friday. We may see some retracement today in which case strong support is still at the daily middle band, now at 2089. SPX daily chart:

150323 SPX Daily Rising Wedge BBs MAs

Might we a retracement that deep today? Possibly yes. Short term rising support broke down at the close on Friday so I would expect to see at least retracement today. If that gets going then I have a possible rising channel here with channel support currently close to Thursday’s lows. We could see another test of support there. SPX 5min chart:

150322 SPX 5min Broken Wedge poss Rising Channel

I’m expecting to see at least some retracement today and the obvious strong support level on a strong break down from from 2106/7 is the 2085-92 support zone. Depending on when that is hit, anywhere in that zone may be a match with the possible rising channel support that I’ve marked on the chart above.

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