SPX tested falling channel resistance at the high yesterday and if that channel is going to hold then yesterday’s high shouldn’t be tested today. That high was a test of the 50 hour MA at 2060, the 200dma at 2064 and channel resistance at 2066. If the channel breaks then the path is clear for a test of the daily middle band in the 2073 area. SPX 60min chart:
SPX daily chart:
There was no negative RSI divergence at the highs yesterday so I’m leaning towards a test of the daily middle band, which is key (daily closing) resistance for this rally. If we see a break above it then the break needs to be confirmed with another close over the band on the next day. If seen I’d expect a retest of the 2116 soon after. Until we see that my preferred scenario is reversal in this resistance area back towards the 1990 support area.
