Decent rally on Friday that has failed so far either to make a higher high or to break over the 50 hour MA on SPX, so unless that changes I’d expect the rally to be reversed in the near future, and that may well happen. There is a possible alternate scenario here where SPX might be forming the H&S on a larger and flatter H&S pattern, and if so the ideal high would be a bit higher in the 2075 area. That would be very close to the 61.8% fib retracement of the decline from the highs so far and is obviously still potentially in play. Stan’s bull/bear line is the 2039 ES area (approx 2043/4 SPX) so I’ll be watching that area for possible support this morning.
The short term pattern on SPX is a decent falling channel and channel resistance hasn’t been tested yet. A lower high under Friday’s high could deliver that this morning and we may well see that. SPX 60min chart:




