After the spike yesterday morning SPX drifted down all day. At the moment the 50 hour MA at 2109 is holding as support but there is a case for a retracement here to retest the daily middle band at 2102. Bulls would clearly need to strongly defend that level and would need to deliver a daily close at or above that today to keep this choppy uptrend intact. SPX daily chart:
I mentioned yesterday morning that I didn’t have an established support trendline for this move up. I’m looking for this retracement to establish that support trendline. I do have an educated guess as to how that may happen, and that’s shown on the chart below and is a good fit with support at the daily middle band. We’ll see if that channel gets established today. SPX 5min chart:
If we see a strong break below the daily middle band then the spring high may be in. Until then this is just backing and filling and dips should be buying opportunities. There is still an open IHS target at 2127.
