Testing the Daily Middle Band

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SPX has broken range and double top support at 2159, and then the daily middle band at 2155. If bears can now hold that 2155-9 area as resistance today then there are decent odds of a trend down day and the double top target is in the 2140 area. A close below the daily middle band opens up a move to the daily lower band as the obvious next target, and that is currently in the 2111 area.

If the bears can’t hold the 2155-9 area as resistance then this may just be the low before the higher high, and we could still see the 2190-2 test that I was looking at yesterday morning. SPX 60min chart:

160802 SPX 60min Support Break

SPX daily chart:

160802 SPX Daily

As I was saying yesterday morning, as and when this retracement gets going properly I’m looking for at least a 4% decline. That should obviously take SPX back under 2100 and maybe quite a bit further.

Just a reminder that Stan and I are doing our monthly public Chart Chat on Sunday. It’s free and all are welcome and you can sign up for that on this page here.