I was concerned yesterday morning that SPX would fail to break down through the 1939 to 1945 support area, and that failure there would likely lead to a significant rally. SPX made the H&S target at 2045 and that was the low for the day, leaving a a setup for a rally at the close that has reached as high as 2060 on ES overnight. Looking at SPX, NDX and RUT I’m expecting that rally to go higher in trading hours today with the first obvious target at likely falling wedge resistance on SPX, currently in the 2070 area. On a break up from the falling wedge I’d be looking for a retracement into one of the 38.2% (2070 if over wedge resistance then), 50% (2077), or 61.8% (2085) fib retrace targets. SPX 15min chart:
