All of SPX, NDX and RUT formed tight falling wedges from the pre-Brexit highs and all of them broke up yesterday before the close. I called the long on the member only twitter feed at theartofchart.net and that was a very nice rally into the open today. So what now?
Our main scenario is looking for a rally into, and fail at, the 2020-30 area. The current HOD is nicely in this area and we are looking for a hard fail here into a lower low below yesterday’s low. If seen that would be supportive of a possible break below the 50% fib retrace target in the 1965 area towards the 61.8% fib retrace target in the 1930 area. If we see a sustained break above 2030, then that will open up a possible retest of broken double top support at 2050 and 5dma resistance currently in the same area. SPX 60min chart:
