SPX broke down and has retested the retracement low, as have NDX and Dow as well, but not yet IWM. This brings SPX and the other US indices to the key inflection point this year, where we see whether the move so far this year has been the formation of large bull flags setting up retests of the all time highs, or whether US indices are going to break down further directly.

What we have on the bull side here are possible buy signals now brewing on the weekly chart and clear high quality bull flags formed on SPX and Dow particularly, as well as on many other individual stocks and ETFs of course. On the bear side we have the worsening economy, rising interest rates and embedded inflation that the Fed are now admitting is not transitory. I would point out though that a retest of the all time highs might well not be a bullish development, as that might make the second highs on double tops large enough to then potentially retrace most or even all of the gains made since the 2020 low.