In my last post on Thursday I was projecting a possible path for US indices if we are going to see decent quality bear flags form on this rally, and initially they were going to need to go down, which they have. They overshot my target trendline options at the lows yesterday, but that’s fine, as long as they turn back up in this area or not too far below into new highs for this rally.

On the SPX chart the current low could make a very decent support trendline and, if we see a next leg up start towards a new rally high, the ideal target would be the resistance trendline currently in the 5590 area. Possible resistance on the way at declining resistance from the high, currently in the 5500 area. A 15min RSI 14 buy signal has fixed.