On Friday night I posted the small channel from the 2129 high together with the larger falling channel it was trading within. Both have broken down at the open today and the bears now have a shot at breaking more important support levels. SPX 5min chart:
The main more important support level is at rising channel support and the daily lower band, now in the 2077/8 area. If broken I then have H&S neckline support at 2075, and on a sustained break below that would open up an H&S target in the 2010-5 area. SPX 60min chart:
I’m not sure how seriously to take the grexit crisis and am waiting to be impressed by a serious support break. That would start to look serious. Until then there is strong support below and big gaps up or down on headlines have a very strong tendency to fill the gap before picking a firm direction. I’m a seller on a gap fill today and the daily middle band at 2103 should now be decent resistance.
