More greek news overnight and at the moment SPX is trying to gap up 18 handles or so. Where the open is exactly today is very important as SPX retested and failed twice at the broken H&S neckline yesterday. If we see a gap up over that level at the open this could well be a gap up over resistance, and as long as 2073/4 is then respected as support then SPX is is free to play out the double bottom that with the opening break will have triggered with a target in the 2093 area, with declining resistance from the high currently in the 2092 area.
There is a strong resistance zone 2095-2105 and this rally could get SPX close to the bottom of that zone. SPX 60min chart:
The SPX daily middle band is currently at 2098, near the middle of the 2095-2105 resistance zone. The daily lower band is currently at 2062 and would need a test today if the lower band ride down is to continue. SPX daily chart:
I have the SPX on a 60min buy signal here and a strong rally on a gap over resistance today looks very credible, subject to more news of whatever type about the greeks. As long as 2073/4 holds as support then I would be looking for a move to 2090-5 and a possible test of the 2095-2105 resistance zone. If 2073/4 doesn’t hold as support this rally may well just fade away as suddenly as it has appeared. An announcement that the greeks have cancelled the referendum could spike the market up hard. A credible announcement that the referendum will be proceeding regardless may spike the market down hard.
