Short Term Crossroads

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SPX is at a short term crossroads today, as Stan and I were discussing in Chart Chat yesterday. You can see the recording for that here. The option I outlined was a double top that would target the 2068 area on a break under 2080. That would be just above the 61.85 fib retrace of the move up from 2052. Stan was looking at a possible break up through triangle resistance into the 2120 area. We agreed it was a coin toss but so far SPX seems to be favoring the double top and retrace scenario. SPX 5min chart:

150817 SPX 5min Possible Double Top Setup

If we see a test of resistance later today I have the resistance cluster that I was looking at on Friday morning in the 2094-7 area and triangle resistance in the 2100 area. SPX daily chart:

150817 SPX Daily 5DMA Breaks 2015

I’m thinking AM low and then rally today, unless bears can break below 2067, in which case we might get a retest of the 2052 low.