I last wrote about the SPX, 10YT and SPX:VIX ratio here.
After this morning’s (Thursday’s) gap up, and as at 1:00 pm ET, the S&P 500 Index (SPX) has popped back above its 2650 major resistance/support level, as shown on the following daily chart.
It’s back in the red zone in between 2700 and 2650, which form major resistance and support, respectively. Near-term resistance levels are 2673 and 2692 (formed by intersecting channel lines).
The momentum indicator is still below zero, so any further rally should bring it back above that level to support further SPX strength. Otherwise, beware of a potential “dead-cat bounce“ as price either stays mired in the red zone, or drops back below 2650, to, possibly, lower lows for the year. (more…)