SPX has survived the three days of the three day rule and there are multiple reasons to expect more upside here, including the daily RSI 5_NYMO buy signal and RSI 14 buy signal. Hard to call exactly where this is likely to top out but the three main areas for me are a retest of strong resistance in the 1940-50 area, then if broken I have an IHS target in the 1970 SPX area. If 1970 breaks hard then the highest target is the retest of the 100 week MA in the 2007 area.
While this rally lasts the key support levels to watch are closing support at the 5dma, currently in the 1890 area, and the 50 hour MA, currently at 1882. SPX daily 5dma chart:
The IHS targeting the 1970 area on SPX is on the chart below & looks pretty solid. I think the chances of making that target are good. Anything higher would be a bonus. SPX 15min chart:
This is very likely just a rally within an ongoing downtrend, but it’s an interesting change of pace and will hopefully set up the next big short entry well. That is the most interesting trade I’m looking at here, and I’m hoping to catch that as close to 2000 as the bulls can manage.
