The bears had a try to make a lower low on SPX yesterday and failed into a move up that closed well above the 2SD daily lower band. The bulls have a shot at turning this back up today and on a sustained break over double bottom resistance at 1954.09 the target is the 2041 area. For some reason I called that in the 2050s yesterday but the target would definitely be 2041 area.
I ran the optic run 15min charts yesterday and I’d assess those as being neutral to bullish, with the most bullish chart being RUT. If RUT is leading then bears are in real trouble here. Scan 3x 15min SPX INDU TRAN charts:
Scan 3x 15min NDX RUT NYA charts:
Bulls are opening with a breakaway gap over resistance today and the setup is simple enough. If bears can fill today’s opening gap then it is no longer a breakaway gap and we would generally see a hard fail. On the upside there are a load of open gaps marked on the chart and filling those gaps is bullish. At a hit of 1975 SPX I will be taking the double bottom target at 2041 as the most likely next target.
