Good day to all!!! SPX has reached very close to our 2620 target area as I mentioned on twitter and in a comment of a past analysis here.
— Alexandros Yfantis (@alexanderYf) January 9, 2019
What now? SPX could very well be at the final stages of its move that started back in late December with the 2333 low…..SPX is showing bearish divergence signs and we could see a bearish wedge being formed. Upside target is now moved to 2643 and a move below 2588 would imply that at least the short-term up trend is over.
The 2620-2645 area is of high importance because in this area we saw two important lows and strong reactions to the upside back in October and November. This previously support area is now resistance.
Traders should be prepared for a pull back from this area if not the resumption of the bearish trend. Let’s see how the market reacts over the coming days at this resistance area and we will come back to the next moves we expect…..My personal view is that we should expect a move back towards 2520 area at least.
Have a great day everyone!!!