SPX falling channel support held again yesterday and that has delivered a strong bounce from the trendline that we would expect. we are now at an interesting stage where at the close last there were fixed buy signals on both of the SPX 60min RSI 14 and 5, and also on the 15min RSI 14 and 5.
So have we made the low for the current move down? Most likely not, or at least it would be a funny looking low. Stan and I are thinking sideways consolidation before the low is made and I’m looking for much or all of this impressive gap up on SPX to be given back by the end of the day. Channel resistance on SPX is in the 1925 area and I have that falling at about 12-4 handles per day. I think that is more likely to be hit tomorrow than today, though I could be mistaken.