The rally on SPX was muted yesterday and SPX gapped through main rising wedge support this morning. I’m expecting this to follow though, though today has so far been about retesting that broken wedge support. That’s being retested now and if it holds as resistance then the next leg down should deliver a less brief break through double top support at 2119. SPX daily chart:
There are some signs that SPX might rally higher here, as declining resistance on the SPX 15min chart has broken up. If so the rally yesterday may not have been the backtest of the triangle, and that may be what we are seeing now. If so we may see yesterday’s highs broken before a likely reversal back down. The overall setup here is bearish, and bears are in the driving seat here unless we see a closing break back over the daily middle band, currently at 2154. SPX 15min chart:
Stan and I are doing a free educational webinar at theartofchart.net an hour after the close tonight on ‘Trading using Pattern Analysis’ If you’d like to attend you can register for that here.
