I had a very busy day yesterday and didn’t manage to get a post out. Hopefully some of you caught my premarket tweet which captured the day nicely:
So what about those lower lows, which we haven’t seen yet? We the pattern setup is clear enough, with a small rising wedge that formed from the 2328.95 low and has broken down with a minimum target at a retest of 2328.95. To get there however the possible triangle support would have to break, and that’s at 2331 and hasn’t broken yet. While that triangle support holds SPX may still be returning to triangle resistance, currently in the 2371-3 area. On a break below that triangle support the downside opens up, and SPX can go considerably lower.