SPX filled gap below yesterday and that has opened the path to the next trendline target, which is rising wedge support from the early November low. That’s currently in the 2348 area. On the way is some support at an open gap into 2351.16. SPX 60min chart:
TOn the daily chat there is also important support at the daily middle band now at 2358. That was tested at the low today and is holding so far. There’s unlikely to be a significant break of that on a daily closing basis unless rising wedge support is broken. SPX daily chart:
In terms of other downside targets the other main outstanding one here is the TF double top target in the 1345-50 area. That’s likely to be reached before any serious rally. TF Mar 60min chart:
In terms of sell signals on SPX the hourly RSI 14 sell signal has reached the possible near miss target but the daily RSI 5 sell signal needs a bit more. The strong rally from the low today is suggesting that a short term low may be close, and may well be at the test of that rising wedge resistance.
