The bears had their chance yesterday. SPX retested the middle band and there was a knife fight there that lasted all afternoon, with SPX closing within ticks of the middle band. As SPX was testing it from above, that was a victory for the bulls, with key support holding there at the close. These retests can provide some great entries with superb risk/reward entries. I called this one in the Princeton Trader trading room at the low yesterday. Worth catching these when we get them. SPX daily chart:
On the SPX 15min chart I now have a possible rising channel from the IHS right shoulder low. Support this morning is at that channel support and at the daily middle band in the 2090 area. As long as the daily middle band holds the next obvious targets are the retest of the all time high at 2119.59 and the IHS target in the 2125 area. That area is an inflection area and I’ll be looking at the options from there in my Monday post. SPX 15min chart:
The bears had a shot at breaking support yesterday and failed. Now the bulls have to break resistance at Wednesday’s high, and at the time of writing that test could be in the first hour today. If we see a solid break above then we might well trend up today. A hard fail would invite another test of the daily middle band. Everyone have a great weekend. 🙂
