That was a nice break down yesterday, though I’d note that the bears still haven’t managed to put a full day together in this downtrend so far. I’d also note that the falling megaphone from the high is still not yet broken. While that remains intact there is a significant probability that we will see a retest of the highs, though it is also possible that this megaphone may just expand into the 2023 fib retrace target and then break up afterwards.
In the short term we are seeing a bounce off megaphone support and if that continues the obvious next target is megaphone resistance, currently close to the 50 hour MA in the 2094 area. That would be the first target on a rally from here. If the megaphone was to break up then the target would be a retest of the 2116 high. and that would be very likely to be the second high of a double top targeting that 38.2% fib retrace target at 2023. SPX 60min chart:
