SPX tested the daily lower band on Friday and almost hit wedge support. That near miss has implications as I would generally expect after a near miss like this then the rising wedge support level should break on the next hit, and if that happens then the path to the full triangle target at 2072 opens up. The other thing to note if wedge support breaks today is that we could be starting a daily lower band ride down, and as long as that lasted we would be looking for an AM high followed by more downside. SPX daily chart:
I have no decent buy signals here and not much to suggest that a strong rally is near, so we could well see the full triangle target at 2072 made. SPX 15min chart:
Important resistance today is at the 50 day MA & EMA, both at 2101 and resistance on Friday. Important support is at 2084/5 at rising wedge support and the 100 day MA. My lean is short unless SPX breaks back over 2101 with conviction, or bounces strongly off a hit of wedge support. If wedge support is broken then I’ll be looking at the full triangle target at 2072.
