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Retesting Broken Support

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SPX 60min RSI 14 and RSI 5 buy signals fixed at the close last night, and the various decline patterns on ES, NQ and TF all broke up overnight. I suspect strongly that this is a rally before another leg down and if so, then the resistance levels that I’m watching here are the retest of the daily middle band from below at the broken floor at 2085, then the 5dma in the 2095-7 area that should be bolstered by the 50 hour MA as well if reached. If that area gets turned into support then the retrace from the highs is likely over.

On the SPX daily chart main rising channel support from the Feb low was broken at the open yesterday. That was an important break and opens up what may be a much deeper retracement. On a sustained break below the last serious low at 2025 the double top target would be in the 1930 area, which would almost exactly be a 61.8% fib retracement of the rising channel from the February low. After yesterday morning’s break that possible retracement target is in the mix now. SPX daily chart:

160615 SPX Daily

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